The U.S. government offers tax credits on hybrid automobiles. This tax credit:

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The U.S. government offers tax credits on hybrid automobiles. This tax credit:

The U.S. government offers tax credits on hybrid automobiles. This tax credit:

▸ reduces the personal cost of abatement of car pollution.

▸ increases the demand for gasoline.

▸ encourages people to drive and pollute more.

▸ all of the above.

Textbook

Microeconomics: Principles, Applications, and Tools

Edition: 8^th

Authors: O'Sullivan, Sheffrin, Perez

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