Suppose That a Tax Is Placed on DVDs

question 68

Multiple Choice

Suppose that a tax is placed on DVDs.If the sellers end up bearing most of the tax burden,we know 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:

Covenants Not to Compete

Agreements often included in employment contracts that restrict an employee's ability to engage in business activities that compete with their employer after the employment ends.

Sale of Business

The process or transaction in which ownership of a business is transferred from one party to another.

Breach of Contract

The violation of any terms or conditions in a contract without legal justification.

Valid License

An official permission or permit that meets all legal requirements to engage in a particular activity or profession.