All consumers have received a tax cut. What happens to the equilibrium price of automobiles?

a. increases

c. remains the same

b. decreases

d. none of the above

Question

Kasey Murray

Social Studies

19 July, 12:15

All consumers have received a tax cut. What happens to the equilibrium price of automobiles?

a. increases

c. remains the same

b. decreases

d. none of the above

+5

Answers (1)

Know the Answer?

Allan Townsend · Answer 1

The answer would be : a. Increases

If the consumers received a Tax Cut, they will have more Disposable Income that they can used to buy Products.

Automobiles' companies will see this as an opportunity to increase the price of their product to generate more revenue for the company

All consumers have received a tax cut. What happens to the equilibrium price of automobiles?a. increasesc. remains the sameb. decreasesd. none of the above

All consumers have received a tax cut. What happens to the equilibrium price of automobiles?

a. increases

c. remains the same

b. decreases

d. none of the above