Suppose That in Canada the Government Places a $1,500 Tax

Multiple Choice

Suppose that in Canada the government places a $1,500 tax on the buyers of new snowmobiles.After the purchase of a new snowmobile, a buyer must pay the government $1,500.How would the imposition of the tax on buyers be illustrated in a graph?

A) The tax will shift the supply curve up by $1,500.
B) The tax will shift the demand curve up by $1,500.
C) The tax will shift both the demand and supply curves down by $1,500.
D) The tax will shift the demand curve down by $1,500.