Danielle Ocean pays for monthly pool maintenance for her home swimming pool.Last week the owner of the pool service informed Danielle that she will have to raise her monthly service fee because of increases in the price of pool chemicals.How is the market for pool maintenance services affected by this?
A)There is an increase in the supply of pool maintenance services.
B)There is a decrease in the demand for pool maintenance services.
C)There is a decrease in the quantity of pool maintenance services supplied.
D)There is a decrease in the supply of pool maintenance services.

Question

Quizplus · Accepted Answer

The owner of the pool service is raising the monthly fee, which indicates an increase in the cost of providing the service. This means that the supply of pool maintenance services will decrease as some providers may go out of business or reduce their services. This also means that the price of pool maintenance services will increase, leading to a decrease in the quantity demanded by customers. Therefore, there is a decrease in the supply of pool maintenance services.

Danielle Ocean Pays for Monthly Pool Maintenance for Her Home