Consumers Who Traded in a Used Car for a New

question 175

Multiple Choice

Consumers who traded in a used car for a new vehicle under the Cash-for-Clunkers program received a voucher worth up to $4,500 to offset the price of the consumer's new vehicle. What effect did that program's requirement to destroy all trade-in cars have on the market for used cars?

• A) The supply of used cars increased, decreasing the price of used cars.
• B) The supply of used cards decreased, increasing the price of used cars.
• C) The demand for used cars increased, increasing the price of used cars.
• D) The demand for used cars decreased, decreasing the price of used cars.

---

Definitions:

Id

In Freudian psychoanalysis, a part of the mind that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Trait Theory

A psychological approach that studies personality through the identification and measurement of specific characteristics or traits that define an individual's behavior consistently over time.

Traits

Characteristics or qualities that define an individual or thing, often distinguishing them from others.

Conscience

An inner sense of right and wrong that guides an individual's thoughts, actions, and decisions.