Cars in Arlington County, VA S (before tax) P1 D (before tax) Q1 Q For many years the state of Virginia has had a personal property tax levied mainly on cars. The tax is collected from the buyer of the car. In the market for cars above, which curve shifts after the tax is imposed, and what happens to the quantity of cars sold? Select one: O a. S decreases. Q rises.

Microeconomics: Private and Public Choice (MindTap Course List)
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ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 14CQ
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Cars in Arlington County, VA
S (before tax)
P1
D (before tax)
Q1
Q
For many years the state of Virginia has had a personal property tax levied mainly on cars.
The tax is collected from the buyer of the car. In the market for cars above, which curve
shifts after the tax is imposed, and what happens to the quantity of cars sold?
Select one:
a. S decreases. Q rises.
O b. D decreases. Q rises.
O c. S decreases. Q falls.
O d. D decreases. Q falls.
Transcribed Image Text:Cars in Arlington County, VA S (before tax) P1 D (before tax) Q1 Q For many years the state of Virginia has had a personal property tax levied mainly on cars. The tax is collected from the buyer of the car. In the market for cars above, which curve shifts after the tax is imposed, and what happens to the quantity of cars sold? Select one: a. S decreases. Q rises. O b. D decreases. Q rises. O c. S decreases. Q falls. O d. D decreases. Q falls.
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