An Increase in the Demand for GM Automobiles Results In

question 90

Multiple Choice

An increase in the demand for GM automobiles results in:

• A)a lower equilibrium price for GM automobiles.
• B)an increase in the quantity supplied of GM automobiles.
• C)an increase in the supply of GM automobiles.
• D)a lower equilibrium quantity of GM automobiles.

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Definitions:

Cap-And-Trade

An environmental policy mechanism that sets a cap on emissions and allows businesses to buy and sell permits for the right to emit.

Carbon Tax

A tax imposed on the carbon content of fuels to mitigate environmental impacts of carbon dioxide emissions.

Carbon Dioxide Emissions

Carbon dioxide emissions are the release of CO2 into the atmosphere, primarily from burning fossil fuels, which contribute to global warming and climate change.

Allocative Efficiency

A state of resource allocation where it is impossible to make any one individual better off without making someone else worse off, ensuring that resources are used for producing the goods and services most desired by society.