A New Per Unit Subsidy for Hybrid Car Production Increases

question 152

Multiple Choice

A new per unit subsidy for hybrid car production increases the supply of hybrid cars. If hybrid cars are elastically demanded, what will happen to total revenues from hybrid car production?

• A) They will rise.
• B) They will fall.
• C) They will remain the same.
• D) They will change in an indeterminate direction.

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Definitions:

Congress

is the national legislative body of the United States, consisting of two houses: the Senate and the House of Representatives, with the power to make laws.

Trial Courts

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Summary Judgment

A legal determination made by a court without a full trial, based on the facts not being in dispute.

Trial

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