Suppose a new law requires all piercing studios to pass tougher licensing tests and to begin using more costly sterilization methods. Other things constant, this law would cause:
a. an increase in the supply of piercings and a lower price for piercings.
b. an increase in the supply of piercings and a higher price for piercings.
c. a decrease in the supply of piercings and a higher price for piercings.
d. a decrease in the supply of piercings and a lower price for piercings.
c
You might also like to view...
Adding an independent variable to a regression model will always reduce the coefficient of determination
Indicate whether the statement is true or false
Refer to the diagram. At output level Q 1:
A. resources are overallocated to this product and productive efficiency is not realized.
B. resources are underallocated to this product and productive efficiency is not realized.
C. productive efficiency is achieved, but resources are underallocated to this product.
D. productive efficiency is achieved, but resources are overallocated to this product.