There Has Been Much Debate About Imposing a Carbon Tax

Multiple Choice

There has been much debate about imposing a carbon tax on countries importing oil to reduce the carbon footprint world -wide and help protect the environment. What would be the impact of such a tax on the demand for oil and its price?

A) There would be no effect.
B) Demand would increase, prices would fall.
C) The demand for oil would fall, prices of oil would decrease.
D) None of the above.