The government introduces a mandatory safety and quality certification scheme for private childcare providers, which increases their administrative and operating costs. Simultaneously, the government launches a public online registry where parents can easily verify the certification status of these providers, thereby reducing information asymmetry.
What are the effects of this policy intervention on the equilibrium in the market for private childcare?
Demand curve shifts left, Supply curve shifts left, Quantity traded falls
Demand curve shifts left, Supply curve shifts right, Quantity traded is uncertain
Demand curve shifts right, Supply curve shifts left, Quantity traded is uncertain
Demand curve shifts right, Supply curve shifts right, Quantity traded rises
