Which of the following is true in a regulatory environment?

Question

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In a regulatory environment, the number of consumers is often large but their individual payoffs from successful lobbying are usually small. This is because the benefits of regulation are spread over a large number of people, making the individual benefits relatively small. As a result, consumers may find it difficult to organize and effectively lobby for regulations that benefit them. Choice A is incorrect because the individual payoffs from successful lobbying are typically small, not large. Choice C is incorrect because the demand for regulation can be elastic or inelastic depending on the specific circumstances. Choice D is incorrect because the supply of regulation can come from a variety of sources and is not necessarily tied to another industry's success.

Which of the Following Is True in a Regulatory Environment