The owner of a railroad that carries cargo should ________ supply when she foresees regulations that will ________ the cost of shipping cargo by truck.
A)decrease; increase
B)decrease; leave unchanged
C)increase; increase
D)leave unchanged; increase

Question

Quizplus · Accepted Answer

If the owner of a railroad foresees that regulations will increase the cost of shipping cargo by truck, she should increase supply to take advantage of the increased demand for shipping by rail. This would result in lower relative prices for rail shipping, making it a more attractive option for customers seeking alternatives to more expensive truck shipping.

The Owner of a Railroad That Carries Cargo Should ________