If New Regulations Make It Illegal to Sell Older Model

question 133

Multiple Choice

If new regulations make it illegal to sell older model electrical appliances, then

• A) producers of new models that meet the regulations will see demand for their output rise.
• B) consumers who might have purchased to older appliances are clearly made better off.
• C) consumers are helped, but the profits of appliance producers are not affected.
• D) consumers will certainly gain from the change.

---

Definitions:

Smartphone Manufacturing

The industrial process of designing, producing, and assembling components to create smartphones.

Public Utilities

Organizations that provide essential services to the public, such as water, electricity, natural gas, and telecommunications.

Smartphone Industry

A sector of the technology market focused on the development, production, and sale of smartphones.

Oligopoly

A market structure characterized by a few companies having control over a significant portion of the market share, influencing prices and competition.