A tax placed on buyers of shirts shifts the
A) demand curve for shirts downward, decreasing the price received by sellers and causing the quantity to increase.
B) supply curve for shirts upward, decreasing the effective price paid by buyers and causing the quantity to increase.
C) supply curve for shirts upward, increasing the effective price paid by buyers and causing the quantity to decrease.
D) demand curve for shirts downward, decreasing the price received by sellers and causing the quantity to decrease.
Correct Answer:
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