Neither the demand nor the supply of automobiles is perfectly elastic or inelastic. If the government imposes a $1,000 tax on automobiles, then the price of an automobile buyers pay

A) increases by $1,000.
B) increases by less than $1,000.
C) increases by more than $1,000.
D) decreases by $1,000.
E) does not change.


B

Economics

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