Refer to the Figure above.Panel (a) and Panel (b) represent industries that have experienced cost increases due to environmental regulations.Assume that both price increases are equivalent.Which panel reflects less impact on the consumer and a large industry adjustment, in terms of fewer workers and less output?

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Panel (b) reflects a larger industry adjustment because it likely shows a more elastic demand curve, meaning consumers are more responsive to price changes, leading to a larger reduction in quantity demanded and thus a larger adjustment in terms of fewer workers and less output.

Refer to the Figure Above