
Several politicians have proposed a "guzzler" tax that would be added to the cost of few-miles-per-gallon vehicles. If enacted, this tax would most likely
A) reduce the equilibrium price.
B) increase the equilibrium output.
C) increase U.S. dependency on foreign oil supplies.
D) shift the supply curve (for automobiles) inward.
E) do all of these.
Correct Answer:
Verified
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