Negative regulation
Explanation:
The enzymes involved are:
blue 2 protein
enzyme alterase binds to blue 2 operator alters blue 2 transcription.
Mutation in blue 2 operator detest alterase activity.
In negative regulation the alterase ( repressor) binds to the blue gene operator and prevents the transcription of blue gene and hence altering the blue 2 protein production.
After mutation in blue 2 gene operator due to confirmational change alterase does not bind to operator and hence blue 2 gene gets transcribe when transcription factors bind to promoter.