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If the Supply of Automobiles Becomes More Inelastic,then a Tax

Question 126

Multiple Choice

If the supply of automobiles becomes more inelastic,then a tax on automobiles is


A) paid more by the buyers after the change than before.
B) paid more by the sellers after the change than before.
C) always split evenly between the buyers and the sellers.
D) paid more by the government after the change than before.
E) always paid entirely by the buyers.

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