If the government required car makers to install more costly and effective emission control devices on cars, it will lead to:
A)a higher price of cars and a larger quantity of cars sold.
B)a higher price of cars and a smaller quantity of cars sold.
C)a lower price of cars and a larger quantity of cars sold.
D)a lower price of cars and a smaller quantity of cars sold.

Question

If the government required car makers to install more costly and effective emission control devices on cars, it will lead to:
A)​a higher price of cars and a larger quantity of cars sold.
B)​a higher price of cars and a smaller quantity of cars sold.
C)​a lower price of cars and a larger quantity of cars sold.
D)​a lower price of cars and a smaller quantity of cars sold.

Quizplus · Accepted Answer

Requiring car makers to install more costly and effective emission control devices will increase the cost of producing cars, which will result in a higher price of cars. This will lead to a smaller quantity of cars sold as consumers will either choose to not buy a car or buy a cheaper alternative.

If the Government Required Car Makers to Install More Costly