Why do government regulations lead to higher prices for consumers

Asked by maham237 @ 09/06/2021 in Law viewed by 278 People

A.Taxes must be raised to enforce these regulations.

B.Producers pass along the costs of compliance.

C.They limit the input of natural resources.

D.Wages reductions decrease purchasing power.

Answered by maham237 @ 09/06/2021

Answer:

The answer is B. Producers pass along the costs of compliance

Explanation:

Regulations originate from governing bodies. Companies spend capital to bring their products into compliance. These costs must be added to the cost of the product to continue making a profit. Therefore, consumers end up paying the cost of regulations applied to goods and services.

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Why do government regulations lead to higher prices for consumers

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