US Tire Production Involves Large Social Costs from Air Pollution

Multiple Choice

U.S. tire production involves large social costs from air pollution. How will stronger U.S. environmental regulations requiring firms to reduce their air pollutants affect U.S. tire production?

A) Stronger U.S. environmental regulations will cause increases in U.S. tire production.
B) Stronger U.S. environmental regulations will cause decreases in U.S. tire production.
C) Stronger U.S. environmental regulations will neither cause increases nor decreases in U.S. tire production.
D) Stronger U.S. environmental regulations will cause decreases in U.S. tire production but not reduce tire producers' emissions of air pollutants.