Cars P. Q Suppose that your city puts an excise tax on cars but collects the tax from car buyers rather than from car sellers. Each buyer has to pay the tax when the car is registered. What would the likely effect be in the market for cars shown above?

Cars P. Q Suppose that your city puts an excise tax on cars but collects the tax from car buyers rather than from car sellers. Each buyer has to pay the tax when the car is registered. What would the likely effect be in the market for cars shown above?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Cars
D
Suppose that your city puts an excise tax on cars but collects the tax from car
buyers rather than from car sellers. Each buyer has to pay the tax when the
car is registered. What would the likely effect be in the market for cars shown
above?
Select one:
O a. S would shift to the right.
Ob.S would shift to the left.
O c. D would shift to the left.
O d. D would shift to the right.
Check
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