All consumers have received a tax cut. What happens to the equilibrium price of automobiles?
The equilibrium price of automobiles A. increases. The equilibrium price of automobiles increases because consumers now have more disposable income than they had before receiving the tax cut. A tax cut is a reduction of taxes that are placed on those that live in the society they are over. A tax cut can bring a lot of growth to an economy as those who live within have more money to spend.
