Many State Governments Are Looking for New Revenue Sources, and a Tax

question 58

Multiple Choice

Many state governments are looking for new revenue sources, and a tax on internet purchases has been proposed by many. To an economist, this could be modeled by

• A) a decrease in demand, resulting in a lower price and quantity
• B) a decrease in supply, resulting in a higher price and lower quantity
• C) a decrease in demand, resulting in a higher price and lower quantity
• D) an increase in demand, resulting in a higher price and higher quantity
• E) a decrease in supply, resulting in a higher price and higher quantity.

---

Definitions:

Verbal Ability

The capacity to use language effectively and understand, interpret, and express oneself through written and spoken words.

Jacqueline Eccles

A psychologist known for her research in educational psychology, especially on adolescents' academic motivation and achievement.

Skills Development

The process of identifying, learning, and refining skills and competencies to enhance personal or professional effectiveness.

Right Cerebral Hemisphere

The right half of the cerebrum, involved in visual-spatial skills, recognition of faces, and processing of emotions and expressions.