Business, 26.11.2019 03:31 chloelandry

In the united states, a buyer of a new electric car (ev) is eligible for a one-time federal income tax credit of up to $4,000. model the effect of this tax credit graphically, assuming the $4,000 credit is a pigouvian subsidy. label carefully. a.) first, draw the figure (model) for the market for electric vehicles in terms of mpb and mpcb.) next, if electric vehicles reduce external costs of driving add these benefits to your graph as the msb of electricc.) now, model the effect of the tax credit, i. e. a shift in the mpbd.) if the tax credit is a pigouvian subsidy, describe its magnitude and location in your graph. e.) in terms of your graph, how much are government tax revenues reduced by the ev tax credits?

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