Final answer:
Tougher licensing laws and more expensive sterilization methods in piercing studios are likely to lead to decreased demand for piercings, due to higher costs for studios and consumers, and reduced competition in the industry.
Step-by-step explanation:
The law requiring tougher licensing and costlier sterilization methods in piercing studios would likely cause a decrease in the demand for piercings. This is because increased licensing and sterilization costs create a barrier to entry in the industry, making it more difficult for new entrants to start piercing businesses and compete with existing studios. As a result, competition is reduced, which may lead to higher prices for consumers and less consumer choice. Moreover, existing businesses must absorb higher operational costs and may pass these costs onto consumers, possibly leading to reduced demand.
On the other hand, such laws can contribute to improved public health and safety outcomes, which might result in long-term customer satisfaction but this is not the immediate economic effect. Therefore, the most likely immediate consequence of the law would be Decreased piercing demand (Option A) because of the higher operational costs and increased prices for piercing services.