If the government imposes an excise tax on cars equal to $5,000 per automobile, the supply of automobiles will shift to the:

A. right and the price of automobiles will decrease by an unknown amount.
B. right and the price of automobiles will decrease by $5,000.
C. left and the price of automobiles will increase by $5,000.
D. left and the price of automobiles will increase by an unknown amount.


Answer: D

Economics

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