Will the new regulations raise the price of tires

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Reference no: EM133440708

ASSIGNMENT:

Consider the following:

(i) 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? Why or why not?

(ii) Suppose the government imposes new regulations that force tire manufacturers to adopt cleaner production methods that raise the production co st by $10 per tire. Will the new regulations raise the price of tires? Why or why not?

Reference no: EM133440708

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