The Supply of New Cars Is Perfectly Elastic

question 6

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,

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

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Definitions:

Locum Tenens

A substitute physician hired to see patients while the regular physician is away from the office.

Dates And Times

Specific points or periods on the timeline, usually marked for reference or scheduling of events.

Telephone Numbers

Sequences of digits assigned for communication on telephony devices, enabling connection to a specific line.

Patient Cancellations

Refers to the instances when patients inform healthcare providers they cannot attend scheduled appointments.