Suppose that the City of Bloomington imposes a $1 per-tire recycling fee on buyers whenever they...

Suppose that the City of Bloomington imposes a $1 per-tire recycling fee on buyers whenever they purchase a new tire. We can illustrate the tax on a graph by shifting the demand curve

A. down by $1; the price received by sellers would fall by $1.

B. up by $1; the price received by sellers would rise by $1.

C. down by $1; the price paid by buyers would rise by less than $1.

D. up by $1; the price paid by buyers would fall by less than $1.

The answer is C . WHY C IS THE ANSWER? (PLZ. CLEAR EXPLAIN)

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Expert Solution

Rahul Sunny answered 1 year ago

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