Refer to the Figure Above

question 31

Multiple Choice

Refer to the Figure above. Panel (a) and Panel (b) represent industries that have experienced cost increases due to environmental regulations. Assume that both price increases are equivalent. Which panel reflects less impact on the consumer and a large industry adjustment, in terms of less output?

• A) Panel (a) reflects a larger industry adjustment.
• B) Panel (b) reflects a larger industry adjustment.
• C) Panel (a) and Panel (b) reflect the same industry impact.
• D) The graphs do not indicate which industry is affected more by the regulations.

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Definitions:

Moderates

Individuals or positions in politics or social issues that are not extreme and often found in the middle of the spectrum.

Male

Referring to the sex of an organism or individual that produces sperm or male gametes.

Political Science

The examination of political structures, the functioning of governments, and the conduct related to politics.

Class

A set or category of things having some property or attribute in common and differentiated from others by kind, type, or quality.