Let D = Demand, S = Supply, P = Equilibrium

question 249

Multiple Choice

Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for electric vehicles if the government offers incentives to manufacturers to produce more electric vehicles?

• A) D increases, S no change, P and Q increase
• B) S increases, D no change, P decreases, Q increases
• C) D and S increase, P and Q decrease
• D) D no change, S increases, P decreases, Q decreases

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Definitions:

Gross Sales

Gross Sales are the total sales income of a business before any deductions are made for returns, allowances, or discounts.

Sales Discounts

A decrease in the cost of products or services provided to consumers, usually to encourage prompt payment or large-scale buying.

Account Category

A classification or grouping used in accounting to organize financial transactions, such as assets, liabilities, revenue, and expenses.

Normal Balance

The side (debit or credit) of an account that is usually increased, reflecting its normal financial balance.