Suppose That a Tax Is Placed on DVDs

question 271

Multiple Choice

Suppose that a tax is placed on DVDs. If the sellers end up bearing most of the tax burden, this indicates that the

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

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Definitions:

Frontal Lobotomy

A surgical procedure that involves severing connections in the brain's prefrontal lobe, historically used to treat mental disorders but now largely discredited.

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A type of psychotherapy aimed at increasing a patient's awareness of underlying motives and defenses.

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A chemical element used as a medication to treat and prevent episodes of mania in people with bipolar disorder.