If the Government Decided to Heavily Regulate Small Farmers Who

Multiple Choice

If the government decided to heavily regulate small farmers who grow organic and free-range food, the supply of that food:

A) would increase because the regulations would improve the quality of that food.
B) would decrease because the regulations are like a tax on the food; they make it more expensive to produce.
C) would have no effect, because none of the shifters of supply are affected.
D) would increase because of changing expectations.