Neither the Demand nor the Supply of Automobiles Is Perfectly

question 176

Multiple Choice

Neither the demand nor the supply of automobiles is perfectly elastic or inelastic. If the government imposes a $1,000 tax on automobiles, then the price of an automobile

• A)increases by $1,000.
• B)increases by less than $1,000.
• C)increases by more than $1,000.
• D)decreases by $1,000.
• E)does not change.

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Definitions:

UCC

The Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law among the states.

Warranty Rights

Legal entitlements or protections afforded to consumers, guaranteeing that a product will meet certain standards of performance and quality.

Privity

The direct relationship between parties to a contract, which determines who can sue whom to enforce rights or obligations under the contract.

Title Warranties

Legal guarantees provided by a seller that they have the right to transfer ownership and that the asset is free from liens or encumbrances.