Show the effect of tax credit graphically assuming the 4000, Econometrics

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Show the effect of tax credit graphically assuming the 4000

In the United States, a buyer of a new electric is eligible for a one-time federal income tax credit of up to $4,000. Show the effect of this tax credit graphically, assuming the $4,000 credit is a Pigouvian subsidy. Label the graph correctly and explain how this tax credit will affect each of the curves, equilibrium price, and quantity.

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Econometrics: Show the effect of tax credit graphically assuming the 4000

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Econometrics: Show the effect of tax credit graphically assuming the 4000

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