If increases in government regulations have increased the cost of producing gasoline-powered lawnmowers, you accurately predict that in the market for gasoline-powered lawnmowers, there will be a(n)

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Quizplus · Accepted Answer

An increase in production costs due to government regulations would lead to a decrease in the supply of gasoline-powered lawnmowers. This decrease in supply would, according to the law of supply and demand, lead to an increase in the price of gasoline-powered lawnmowers. As the price increases, the quantity demanded by consumers would decrease, following the law of demand.

If Increases in Government Regulations Have Increased the Cost of Producing