Question

There is a tax rebate that everyone in the nation receives from the government of $1000. The market for laptops notices a shift because of this. What effect will this rebate have on the laptop market?

Answer 1

Answer:

hello your questions lacks the required options here are the options

a) This will increase demand

b) This will decrease the quantity demanded

c) This will increase the quantity demanded  

Answer : This will increase demand ( A )

Explanation:

Tax rebate also known as tax refund is a payment made to a taxpayer by the government and this is usually when the taxpayer pays above the required amount of tax he or she was supposed to pay.

This simply means that the taxpayers will have an extra money to purchase certain items that might not be an essential item but  important and expensive such as Laptops and other items. therefore the shift in laptop market due to the rebate is caused by the increase in demand for laptops and not necessarily increase in quantity demanded i.e there will be increase in customers and not an increase in quantity by existing customers since it is natural for one customer to purchase just a single laptop at a time for personal use.