Suppose a new law requires all piercing studios to pass tougher ...

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Suppose a new law requires all piercing studios to pass tougher licensing tests and to begin using more costly sterilization methods. Other things constant, this law would cause:
 a. an increase in the supply of piercings and a lower price for piercings.
  b. an increase in the supply of piercings and a higher price for piercings.
  c. a decrease in the supply of piercings and a higher price for piercings.
  d. a decrease in the supply of piercings and a lower price for piercings.

Question 2

An increase in the demand for tattoos will lead to a:
 a. higher price and a larger quantity sold. b. lower price and a larger quantity sold.
  c. higher price and a smaller quantity sold. d. lower price and a smaller quantity sold

[ryhom]

Answer to Question 1

c

Answer to Question 2

a