How does an increase in an excise tax on cars affect the supply of cars?

a. More cars will be made.

b. Fewer cars will be made.

c. Supply will stay the same.

d. Supply will increase. Reset Selection

Question

Nora Velazquez

Social Studies

7 April, 03:56

How does an increase in an excise tax on cars affect the supply of cars?

a. More cars will be made.

b. Fewer cars will be made.

c. Supply will stay the same.

d. Supply will increase. Reset Selection

+5

Answers (2)

Know the Answer?

Snowflake · Answer 1

The answer would be B).

Winston · Answer 2

The correct answer is letter B. Fewer cars will be made. The increase in an excise tax on cars affect the supply of car by having "fewer cars will be made." Because of the increase of tax, it will also manifest an increase in amount of production and increase in selling price.

How does an increase in an excise tax on cars affect the supply of cars?a. More cars will be made.b. Fewer cars will be made.c. Supply will stay the same.d. Supply will increase. Reset Selection

How does an increase in an excise tax on cars affect the supply of cars?

a. More cars will be made.

b. Fewer cars will be made.

c. Supply will stay the same.

d. Supply will increase. Reset Selection