Mazin subscribes to a monthly pest control service for his home. Last week the owner of the service informed Mazin that he will have to raise his monthly service fee because of increases in the price of gasoline used by his workers on their service trips. How is the market for pest control services affected by this?
A) There is a decrease in the quantity supplied of pest control services.
B) There is a decrease in the supply of pest control services.
C) There is an increase in the supply of pest control services.
D) There is a decrease in the demand for pest control services.

Question

Quizplus · Accepted Answer

An increase in the price of gasoline, a necessary input for providing pest control services, raises the cost of providing these services. This leads to a decrease in the supply of pest control services, as it becomes more expensive for providers to offer the same amount of services at previous prices.

Mazin Subscribes to a Monthly Pest Control Service for His