Suppose That in Most Car Collisions Between Cars of Unequal

Question 105
Multiple Choice

Suppose that in most car collisions between cars of unequal size,the smaller car sustains the most damage and its occupants suffer the most injury.In answering the following question,assume that,on average,smaller cars generate less air pollution and that every person in the economy drives at least one car. Refer to the information above.As the average size of cars increases,the incentive to buy a smaller car: A) also increases due to cost savings at the fuel pump. B) also increases to offset the external cost of air pollution. C) decreases because of the increased risk of injury in a collision. D) remains the same because car purchases depend on individual preferences.