If the government places a $1500 tax on each hybrid car sold,

Question

Quizplus · Accepted Answer

The imposition of a $1500 tax on each hybrid car sold does not necessarily mean consumers will stop buying hybrid cars, nor does it directly cause the demand or supply curve to shift by $1500. The tax affects the market by potentially increasing the price or decreasing the producer's profit margin, but the specific effects on demand and supply curves are more complex and not accurately described by any of the given options.

If the Government Places a $1500 Tax on Each Hybrid