Assuming that the government imposes an excise tax on cars equal to $1000 per automobile, the supply of automobiles will shift:
A) to the right and the price of automobiles will change by an undeterminant amount.
B) to the left and the price of automobiles will increase by $1000.
C) to the left and the price of automobiles will increase by less than $1000.
D) to the right and the price of automobiles will increase by more than $1000.
Correct Answer:
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