What Is the Most Likely Effect of Reducing Costly Regulations

question 4

Multiple Choice

What is the most likely effect of reducing costly regulations on the supply curve for a good?

• A)The supply curve for the good will shift to the left.
• B)The quantity supplied of the good will reduce.
• C)The supply curve for the good will shift to the right
• D)The supply curve for the good will not be affected.
• E)The quantity supplied of the good will increase.

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Definitions:

Economic Concentration

The degree to which a small number of firms occupy a large proportion of the market in a particular industry.

Market Shares

The portion of a market controlled by a particular company or product.

Horizontal Merger

A business consolidation that occurs between firms that operate in the same industry.

Airline

A company that provides air transport services for traveling passengers and freight.