Which of the Following Increases the Equilibrium Price of a Used

question 128

Multiple Choice

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

• A) an announcement by the U.S. Attorney General that the windows on older cars were made with cheaper glass that can explode at high speeds
• B) new federal legislation that raises the legal driving age to twenty-four in all states
• C) a new fee that used car dealers must pay to the government on all sales of used cars
• D) all of the above because each is consistent with the "law of demand"

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Definitions:

Plessy v. Ferguson

A landmark United States Supreme Court decision that upheld the constitutionality of racial segregation laws for public facilities under the doctrine of "separate but equal."

Rights

Legal, social, or ethical principles of freedom or entitlement; that is, rights are the fundamental normative rules permitting or obliging actions.

Juvenile Court

A court of law responsible for the trial or legal supervision of children under a certain age, typically involved in criminal cases or welfare issues.

Local Government

Administrative bodies in smaller geographical areas within a country that govern at a local level, beneath the state or national level.