Suppose That a Tax Is Placed on Books

question 97

Multiple Choice

Suppose that a tax is placed on books.If the sellers pay the majority of the tax,then we know that the

• A)demand is more inelastic than the supply.
• B)supply is more inelastic than the 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:

Box Office

The place where tickets to events such as movies, plays, and concerts are sold, often used to refer to the commercial success of such events.

Markup

Overhead and profit-oriented increment on the cost price of goods.

Sweater

A knitted garment typically made of wool, cotton, or synthetic yarn, worn over the upper body to provide warmth.

0.51%

A percentage, typically representing an interest rate, dividend yield, or other financial ratio indicating a small change or amount.