Suppose the Demand Curve for Motorcycles Slopes Downward and the Supply

question 58

Multiple Choice

Suppose the demand curve for motorcycles slopes downward and the supply curve for motorcycles slopes upward.If the government passes a law requiring buyers of motorcycles to send $500 to the government for every motorcycle they buy,then

• A)the demand curve for motorcycles shifts downward by $500.
• B)buyers of motorcycles pay $500 more per motorcycle than they were paying before the tax.
• C)sellers of motorcycles are unaffected by the tax.
• D)All of the above are correct.

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