Will the new regulations raise the price of tires?

Reference no: EM13219116

CONSIDER THE FOLLOWING:

1) Suppose the government imposes new regulations that force tire manufacturers to incur some one-time expenses for factory safety improvements. Will the new regulations raise the price of tires?

2) Suppose the government imposes new regulations that force tire manufacturers to adopt cleaner production methods that raise the production cost by $10 per tire. WILL THE NEW REGULATIONS RAISE THE PRICE OF TIRES CAREFULLY EXPLAIN WHY OR WHY NOT?

Reference no: EM13219116

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