These Are the Electric Vehicles That Qualify For a $7,500 Tax Credit

Well Done! - A tax credit has the opposite outcome of a tax. A tax credit given to buyers of electric vehicles raises the amount buyers are willing to pay sellers, so it increases demand. An increase in demand raises the price received by sellers but by less than the amount of the tax credit. The price paid by buyers falls to equal the price received by sellers minus the tax credit.

Correct! - When demand is elastic, the tax credit raises the price received by sellers more than it lowers the price paid by buyers. Sellers receive more of the tax credit.