If Increases in Government Regulations Have Increased the Cost of Producing

question 77

Multiple Choice

If increases in government regulations have increased the cost of producing gasoline-powered lawnmowers, you accurately predict that in the market for gasoline-powered lawnmowers, there will be a(n)

• A) decrease in the quantity supplied of gasoline-powered lawnmowers, a reduction in the price, and an increase in the quantity demanded.
• B) decrease in the supply of gasoline-powered lawnmowers, an increase in the price, and a decrease in the quantity demanded.
• C) decrease in the supply of gasoline-powered lawnmowers, an increase in the price, and a decrease in the demand.
• D) increase in the supply of gasoline-powered lawnmowers, an increase in the price, and a decrease in the demand.

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