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?

Answer 1

Government encourages people to buy hybrid or electric cars even though it is more expensive than the fuelled gas / diesel cars. With this the government gives financial incentives to people who will buy hybrid cars. With this plan it will lessen the pollution and it will also give benefit to the car manufacturers.