Solved

The Supply of New Cars Is Perfectly Elastic

Question 38

Multiple Choice

The supply of new cars is perfectly elastic.A $400 per car tax is levied on buyers.As a result of the tax, the


A) price received by sellers will fall by $400.
B) price paid by buyers, including the tax, will increase by $400.
C) quantity of cars sold per year will be unchanged.
D) excess burden of the tax will be zero.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents