Question

When a government introduces regulations addressing worker safety and environmental protection, it affects businesses and consumers. Businesses face because they must alter existing infrastructure to meet regulations. As a result, consumers pay for produced goods.

Answer 1

When a government introduces regulations addressing worker safety and environmental protection, it affects businesses and consumers. Businesses face (HIGHER COST) because they must alter existing infrastructure to meet regulations. As a result, consumers pay (MORE) for produced goods. 

This is a result of spending extra capital on the investment that business people make to ensure that they are following regulations. As a result, they need to increase the amount of the products that they are selling in order for them to have a Return of Investment (ROI).

Answer 2

1. higher cost

2. more