A few years ago, a news report revealed that Volkswagen, producer of automobiles, had installed software designed to cheat emissions tests in their diesel cars. As a result, a number of legal penalties were imposed on the company, increasing its production costs per unit. What impact would this have on the market for VW cars, other things being constant?

A. Supply shifts right, resulting in a rise in price and a fall in quantity.

B. Supply shifts left, resulting in a rise in price and a fall in quantity

C. Supply shifts left, resulting in a fall in price and a rise in quantity

D. Supply shifts right, resulting in a fall in price and a rise in quantity