Neither the Demand nor the Supply of Automobiles Is Perfectly

question 238

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 buyers pay

• 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.

---

Definitions:

Net Benefits

The total benefits of some activity or policy less the total costs of that activity or policy.

Neoclassical Models

Economic models that emphasize rationality, individual optimization, and equilibrium, focusing on how market mechanisms allocate resources efficiently.

Behavioral Economists

Researchers who study how psychological, emotional, and social factors affect economic decision-making.

Precise

Characterized by exactness and accuracy in expression or detail.