Suppose That the EPA Has Proposed Strict Controls on the Amount

question 43

Multiple Choice

Suppose that the EPA has proposed strict controls on the amount of sulfur that diesel fuel contains. These controls were designed to fully offset the cost of pollution generated by diesel fuel vehicles. The effect of the regulation is estimated to increase the equilibrium price of a gallon of diesel fuel by 10 cents. Suppose that demand for diesel fuel is perfectly inelastic and supply has a positive slope. The effect of the regulation will ________ than if demand were not perfectly inelastic.

• A)increase price and quantity by more
• B)increase price by less and reduce quantity by more
• C)decrease price and quantity by more
• D)increase price by more and reduce quantity by less

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Definitions:

Core Competencies

Fundamental strengths and strategic advantages of an organization or individual that distinguish them from competitors.

Secondary Stakeholder

Parties indirectly affected by a company’s operations, such as the community, suppliers, and media, who do not directly engage with the company's products or services.

News Reporters

Professionals who investigate, gather, and present news and information to the public, often working for newspapers, television, radio, or online platforms.

Core Values

Fundamental beliefs or guiding principles that dictate behavior and action in an individual or organization.