If the government tried to implement a total ban on pollution:
A) output prices would decrease.
B) output prices would increase.
C) production would increase.
D) production would be unchanged.
E) there would be little affect on the standard of living.

Question

Quizplus · Accepted Answer

If the government implemented a total ban on pollution, firms would have to incur additional costs to ensure that they comply with the regulation. These costs would be passed on to consumers in the form of higher prices for goods and services. Therefore, output prices would increase.

If the Government Tried to Implement a Total Ban on Pollution