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There is little flexibility in terms of changing the number of parking spaces provided. On the other hand, there are many substitutes for parking in

  1.  There is little flexibility in terms of changing the number of parking spaces provided. On the other hand, there are many substitutes for parking in the city such as taking the train or parking just outside the city and taking a bus.

If a tax is applied on parking spaces, what happens to the quantity?

  1. Decreases
  2. Increases
  3. Increases then decreases then increases
  4. No effect
  5. Unclear

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