Which of the Following Could Increase the Price of a Used

question 235

Multiple Choice

Which of the following could increase the price of a used car and also increase the equilibrium quantity sold?

• A) a new 8 percent federal excise tax placed on all new car purchases
• B) a special rebate program on all new cars
• C) an increase in wages for used car salespeople
• D) None of the above answers is correct

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Definitions:

Negotiable Order of Withdrawal Accounts

Bank accounts that allow the depositor to write checks against the money deposited, acting similarly to checking accounts.

Money Market Accounts

Accounts that offer higher interest rates than standard bank rates but with greater restrictions.