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.

Question

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.

Quizplus · Accepted Answer

If the government implemented a total ban on pollution, firms would have to incur additional costs to comply with the regulation or invest in cleaner technology. This would increase the cost of production, which would be passed on to consumers in the form of higher prices.

If the Government Tried to Implement a Total Ban on Pollution