Governmental regulations requiring anti-pollution devices on automobiles result in a decrease in the demand for automobiles and an increase in pricE.

Question

Quizplus · Accepted Answer

When anti-pollution devices are required on automobiles, it increases the cost of producing each vehicle. This increase in production costs is likely to be passed on to consumers in the form of higher prices. Due to the higher prices, some consumers may choose not to purchase a vehicle, hence decreasing the demand for automobiles. Therefore, the statement is true.

Governmental Regulations Requiring Anti-Pollution Devices on Automobiles Result in a Decrease