Suppose a new law requires all piercing studios to pass tougher licensing tests and to begin using more costly sterilization methods. Other things constant, this law would cause

Decreased availability results from rising production costs (shift to the left). Prices rise and quantities decline as a result of a decrease in supply.

What Are Production Costs?

All of the direct and indirect expenses firms incur when producing a good or rendering a service are referred to as production costs. Various expenditures, including labour, raw materials, consumable manufacturing supplies, and general overhead, might be included in production costs.

Some characteristics of production cost are-

Production costs are the expenses a business has to pay while producing a good or offering a service that brings in money for the business.
Various expenditures, including labour, raw materials, consumable manufacturing supplies, and general overhead, might be included in production costs.
The total cost of direct materials and labour as well as the total cost of manufacturing overhead can be added together to get the total cost of the product.

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The complete question is-

Suppose a new law requires all piercing studios to pass tougher licensing tests and to begin using more costly sterilization methods. Other things constant, this law would cause:

a) an increase in the supply of piercings and a lower price for piercings.

b) an increase in the supply of piercings and a higher price for piercings.

c) a decrease in the supply of piercings and a higher price for piercings.

d) a decrease in the supply of piercings and a lower price for piercings.