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A Tax Placed on Buyers of Tires Shifts

Question 5

Multiple Choice

A tax placed on buyers of tires shifts


A) the demand curve for tires downward, decreasing the price received by sellers of tires and causing the market for tires to expand.
B) the demand curve for tires downward, decreasing the price received by sellers of tires and causing the market for tires to shrink.
C) the supply curve for tires upward, decreasing the effective price paid by buyers of tires and causing the market for tires to expand.
D) the supply curve for tires upward, increasing the effective price paid by buyers of tires and causing the market for tires to shrink.

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