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.
Answer: A
Microeconomics
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