50.2k views
1 vote
George Gnat subscribes to a monthly pest control service for his home. Last week the owner of the service informed George 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?

User Pao
by
3.4k points

1 Answer

4 votes

Answer:

C) There is a decrease in the supply of pest control services.

Step-by-step explanation:

When the price of gasoline goes up, the supplier of pest control services will be forced to reduce supply. Due to limited resources he will not be able to keep up previous level of supply to his customers.

User Moumen Soliman
by
3.0k points