Consumers Who Traded in a Used Car for a New

Multiple Choice

Consumers who traded in a used car for a new vehicle under the Cash-for-Clunkers program received a voucher worth up to $4,500 to offset the price of the consumer's new vehicle. What effect did that program's requirement to destroy all trade-in cars have on the market for used cars?

A) The supply of used cars increased, decreasing the price of used cars.
B) The supply of used cards decreased, increasing the price of used cars.
C) The demand for used cars increased, increasing the price of used cars.
D) The demand for used cars decreased, decreasing the price of used cars.