ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The establishment of an excise tax on cars
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An end to subsidies to automakers
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The removal of car mileage regulations
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The establishment of quotas on imported cars
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Detailed explanation-1: -The demand for a normal good increases if income increases. The demand for an inferior good decreases if income increases. Expected future income and expected future prices influence demand today. For example, if the price of a computer is expected to fall next month, the demand for computers today decreases.
Detailed explanation-2: -The law of supply says that a higher price will induce producers to supply a higher quantity to the market. Because businesses seek to increase revenue, when they expect to receive a higher price for something, they will produce more of it.
Detailed explanation-3: -Why does the United States regulate automobile manufacturing in so many ways? To offset the air pollution caused by automobiles. When any effort by government causes the supply of good to rise, what happens to the supply curve for that good? It shifts to the right.
Detailed explanation-4: -What would be some examples of fixed costs and variable costs for a farm? fixed cost include rent, buildings or machinery. The variable costs would be crop products, water, and seeds.