Suppose That a Regulated Industry Experiences an Increase in the Price

Multiple Choice

Suppose that a regulated industry experiences an increase in the price of inputs used to produce the good. According to the share-the-gains, share-the-pain theory, we would expect

A) prices to increase by a little immediately and profits to decrease by a lot.
B) there will be some increase in price but not immediately.
C) no increase in price.
D) a quick increase in price maintains profits in the industry.