If the government places a $1500 tax on each hybrid car sold
A) consumers will stop buying hybrid cars.
B) the supply curve will shift left by up to $1500, depending on the price elasticity of demand.
C) the supply curve will shift to the right by $1500.
D) None of the above.
D
Economics
You might also like to view...
What are the information costs associated with forward contracts?
What will be an ideal response?
Economics
Farmer Jones is producing wheat, and must accept the market price of $6.00 per bushel. At this time, her average total costs and her marginal costs both equal $8.00 per bushel. Her average variable costs are $5 per bushel. In order to maximize profits or minimize losses, farmer Jones should:
A. Increase output B. Increase selling price C. Produce zero output and close down D. Continue producing, but reduce output
Economics