Which of the following increases the equilibrium price of a used car and decreases the equilibrium quantity?

Question

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A new fee that used car dealers must pay to the government on all sales of used cars would increase the cost of selling used cars, leading dealers to raise prices to maintain their profit margins. This higher price would decrease the quantity of used cars demanded, thus increasing the equilibrium price and decreasing the equilibrium quantity. Choices A and B would likely decrease both the equilibrium price and quantity, and D is incorrect because not all options are consistent with increasing the equilibrium price while decreasing the equilibrium quantity.

Which of the Following Increases the Equilibrium Price of a Used