One reads in the newspaper: "Today the president and Congress enacted a law which adds new requirements that child care providers must meet before they can offer their services for sale." As a result, an economist would predict that Group of answer choices the supply of child care services will increase, thus lowering the price of child care services. the supply of child care services will be unaffected by the stiffer requirements and therefore the price of child care services will not change. the demand for child care services will fall because people who buy child care services do not want stiffer requirements placed on child care providers. the supply of child care services will decrease, thus raising the price of child care services. none of the above

Question

Business

Alexandra Barnes

19 December, 14:47

One reads in the newspaper: "Today the president and Congress enacted a law which adds new requirements that child care providers must meet before they can offer their services for sale." As a result, an economist would predict that Group of answer choices the supply of child care services will increase, thus lowering the price of child care services. the supply of child care services will be unaffected by the stiffer requirements and therefore the price of child care services will not change. the demand for child care services will fall because people who buy child care services do not want stiffer requirements placed on child care providers. the supply of child care services will decrease, thus raising the price of child care services. none of the above

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Answers (1)

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Teagan Morris · Answer 1

The correct answer is:

The supply of child care services will decrease, thus raising the price of child care services.

Explanation:

All right we need to analyze this context first, the note says that the president and Congress in which they added new requirements that child care providers must meet before they can offer their services for sale. This means that there are going to be fewer people filling this business sector and that because it is going to be more difficult there will be a higher cost related to it. Because the offer will be reduced but the demand is not going to go down. Therefore price-demand concept will make the price go up.