I have been told a larger wheel/tyre decrease acceleration because its harder to turn the wheel making the car rev slower.
But the same person tells me it will increase the top speed.
My question is if the car has a max rev of 8000rpm but only reaches 7000rpm in its highest gear would a smaller wheel/tyre not make it easier for the car to rev higher thus possible increasing the top speed by using a smaller wheel?
As wheel radius increases, its top speed increases for a given RPM since for a given RPM the speed of the vehicle is directly proportional to its radius.
The distance traveled in one rotation = 2 π R
But now, there is another effect also here. As the radius of tyre increases, its moment of inertia increases and it would be harder for the engine to rotate it. So, the engine will not be able to turn it with the same ease as before, but however, there will be an increase in top speed other conditions remaining the same.
Refer to http://wahiduddin.net/calc/calc_speed_rpm.htm for a calculation of top speed vs tyre radius