(06.02 MC)

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 manufacturers and encourage people to buy hybrid or electric cars?

Set a maximum price that a company can charge for a hybrid or electric car.
Create competition by making their own hybrid and electric cars.
Fund companies to do research on the creation of more fuel efficient cars.
Create incentive to buy hybrid or electric cars by reducing the sales tax.