Many Car Manufacturers Have Developed Prototypes of Alternative Energy Vehicles

question 33

Essay

Many car manufacturers have developed prototypes of alternative energy vehicles like hydrogen-fueled cars. When developing their marketing strategies, how can these firms use the diffusion of innovation curve in the early stages of product development?

Comprehend the relationship between tax size, tax revenue, and deadweight loss.

Understand how a government-imposed tax affects consumer surplus, producer surplus, and total surplus.

Calculate the deadweight loss resulting from taxation.

Determine the new equilibrium price and quantity after a tax is imposed.