What would best explain the higher purchase price of an SUV that gets low gasmileage compared to a fuel-efficient sedan, even though the cost ofmanufacturing both vehicles is the same?A a tax exemptionB a deductionC a tax incentiveD a tariff
History · Middle School · Thu Jan 21 2021
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The most appropriate option to explain the higher purchase price of an SUV that gets low gas mileage compared to a fuel-efficient sedan
D. a tariff
A tariff is a tax imposed on imported goods. If the SUV is imported and subject to a tariff, it would increase the cost of importing the vehicle, contributing to a higher purchase price for the consumer. This could be a factor influencing the price disparity between the SUV with low gas mileage and the fuel-efficient sedan, even if their manufacturing costs are similar. Tariffs are often imposed to protect domestic industries or address trade imbalances.