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The government requires the seller of a product containing a potentially toxic chemical to put a label on the product warning of the associated risks.
The government requires the seller of a product containing a potentially toxic chemical to put a label on the product warning of the associated risks. What are the potential outcomes of this kind of information approach to regulation? Group of answer choices The company will try to find substitutes for the toxic ingredient to avoid the regulation. The manufacturer of the chemical will have an incentive to study the chemical to prove that it is not toxic. Consumers will decrease demand for the product. All of the choices are correct
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