Recall the application about imposing a tax on the carbon content of energy sources that produce carbon dioxide.Which one of the following would NOT be a result of imposing the carbon tax?
A)People would seek more energy efficient homes.
B)The quantity demanded of electricity would decrease.
C)People would drive less.
D)The price of electricity would decrease.

Question

Quizplus · Accepted Answer

Imposing a carbon tax would increase the cost of electricity production, which would then be passed on to consumers through higher prices. Therefore, the price of electricity would not decrease, as stated in choice D.

Recall the Application About Imposing a Tax on the Carbon