George Gnat subscribes to a monthly pest control service for his home.Last week,the owner of the service informed George that he will have to raise his monthly service fee because of increases in the price of gasoline used by his workers on their service trips.How is the market for pest control services affected by this?
A)There is an increase in the supply of pest control services.
B)There is a decrease in the demand for pest control services.
C)There is a decrease in the quantity of pest control services supplied.
D)There is a decrease in the supply of pest control services.

Question

Quizplus · Accepted Answer

The increase in the price of gasoline used by the workers of the pest control service provider will increase the cost of providing the service. This will lead to a decrease in the supply of pest control services as the owner will have to charge a higher price or reduce the quantity of services provided to cover the increased costs. Therefore, choice D, a decrease in the supply of pest control services, is the correct answer.

George Gnat Subscribes to a Monthly Pest Control Service for His