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Refer to the Figure Above

Question 11

Multiple Choice

Refer to the Figure above.Panel (b) represents an industry that has experienced cost increases due to environmental regulations.The price increase that the industry experiences, from p1 to p2 is


A) is equal to the cost increase, from c1 to c2
B) is less than the cost increase, from c1 to c2
C) is greater than the cost increase, from c1 to c2
D) cannot be accurately stated from the picture

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