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.