Question

The federal government wants more people to buy hybrid or electric cars. Currently, they are more expensive than cars fueled by gas or diesel. In a market or mixed economy, what might the government do to benefit the car manufactures and encourage people to buy hybrid or electric cars?

Set a maximum price that a company can charge for a hybrid or electric car

Create competition by making their own hybrid and electric cars

Fund companies to do research on the creation of more fuel efficient cars

Create incentive to buy hybrid or electric cars by reducing the sales tax

Answer 1

well the price of hybrids would be reduced when more people buy them

Answer 2

yes true