How does government regulation, such as the imposition of stricter environmental standards, affect the supply curve for manufacturers in a market, and what impact does this have on market equilibrium?

Stricter environmental standards raise the cost of making a product, so manufacturers need more money to produce the same quantity. Because of the higher cost, they are willing to supply less at each price, which shifts the supply curve to the left or upward. When supply tightens, the market equilibrium price goes up while the equilibrium quantity falls. For example, if a plastic‑maker must install a costly filtration system, it will produce fewer bottles at a given price, pushing the price of plastic bottles higher and the amount sold lower. Thus, tighter regulations make the market more expensive and reduce the amount of goods available.