Suppose That a Regulated Industry Experiences an Increase in the Price

question 227

Multiple Choice

Suppose that a regulated industry experiences an increase in the price of inputs used to produce the good. According to the capture theory, we would expect

• A) prices to increase by a little immediately and profits to decrease by a lot.
• B) there will be some increase in price but not immediately.
• C) no increase in price.
• D) a quick increase in price maintains profits in the industry.

---

Definitions:

Enduring Marriage

A long-lasting marital relationship characterized by mutual support, communication, and commitment.

Immediate Family

The closest kin group including the individual’s parents, siblings, spouse, and children.

Nutrients And Oxygen

are essential elements required by living organisms to sustain life, with oxygen needed for respiration and nutrients for various metabolic processes.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to and removing waste from the fetus through the umbilical cord.