Which of the Following Raises the Price of a Used

question 47

Multiple Choice

Which of the following raises the price of a used car and increases the equilibrium quantity sold?

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

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Definitions:

Domestic Supply

The total quantity of a product or service produced within a country and available for domestic consumption or sale.

Domestic Demand

The total demand for goods and services within a country's borders, not including exports or imports.

Import Quota

A government-imposed limit on the quantity of a certain type of good that can be imported into a country, aimed at protecting domestic industries and workers.

Total Revenue

Total revenue is the total amount of money received by a company for goods sold or services provided during a certain period.