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
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