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.

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Definitions:

Morbid Obesity

A condition characterized by an excessive amount of body fat, which may have adverse effects on health, including increased risk of diseases.

Weight Loss Program

A structured plan designed to help individuals achieve and maintain a healthier weight through diet, exercise, and sometimes medical intervention.

Determination Stage

A phase in behavioral change models where an individual is ready and committed to taking action to address a habit or issue.

Abdominal Obesity

Excessive fat accumulation around the stomach and abdomen, raising the risk of cardiovascular disease, diabetes, and other health issues.