Answer :
A "down" mutation would prevent expression even in the de-repressed state (in the presence of the inducer), resulting in a phenotype that is not inducible, would be the consequence for transcription
The lac repressor is a lactose sensor. When lactose is present, the repressor's ability to prevent transcription of the operon in its normal state is lost. The lac repressor recognizes lactose by means of its isomer allolactose. A glucose sensor is the protein catabolite activator (CAP).
The effect for transcription of the lac operon would be that a "up" mutation would render the lac operon independent of the cAMP-CAP complex's positive regulation if we altered the laci gene, resulting in a mutant lac repressor protein that could bind to the lac operator but not to allolactose (when the operon is present with inducer).
Therefore, based on the foregoing conclusion, we can infer that lac operon transcription would be affected negatively if a mutation in the laci gene resulted in a mutant lac repressor protein that could bind to the lac operator but not to allolactose.
This is because a "up" mutation would make the lac operon independent of the cAMP-CAP complex's positive control (when the operon is induced). An uninducible phenotype would come from a "down" mutation, which would preclude expression even in the de-repressed condition (when the inducer is present).
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