Suppose That a Tax Is Placed on Books

question 44

Multiple Choice

Suppose that a tax is placed on books. If the buyers pay the majority of the tax, then we know that the

• A)demand is more inelastic than the supply.
• B)supply is more inelastic than the demand.
• C)government has required that buyers remit the tax payments.
• D)government has required that sellers remit the tax payments.

---

Definitions:

Law Of Supply

The principle that, all else equal, an increase in the price of a good will result in an increase in the quantity supplied.

Suppliers

Entities or individuals that provide goods or services to consumers, businesses, or other organizations.

Good

A physical item that is produced and can be offered to the market to satisfy a want or need.

Market Price

The price of a commodity when sold in a given market, determined by supply and demand dynamics.