Suppose that, all production of wind turbines in the Germany was done

by a single monopolist producer, who faces a downward sloping demand curve. (That is, the demand curve is neither perfectly elastic nor perfectly inelastic. And assume that the demand and the marginal cost curves are straight lines.)

Then, due to changes in the regulatory environment, the cost of production increases by N100 per turbine. Assuming this producer is always maximizing profit, after this change:

(a) The price buyers pay for turbines will go up by more than N100.

(b) The price buyers pay for turbines will go up by exactly N100.

(c) The price buyers pay for turbines will go up, but by less than N100.

(d) The price buyers pay for turbines will not go up.

(e) Cannot be determined whether the price will increase or decrease.