Governments generally levy taxes on many goods and services to raise revenue to pay for expenditures such as national defense, public schools, etc. Taxes may be imposed on the market transactions, institutions, property, meals, and other things. The government can choose and make buyers or sellers to pay the tax. Moreover, regardless of whether the tax is levied on buyers or sellers, the effects of taxation are the same: the price that the buyers pay rises and the price that the sellers receive falls. Finally, the tax also reduces the market size by reducing the equilibrium quantity. The correct answer is D.