Question

1.If the government levies a $2 tax on buyers of blu rays, then the price received by sellers of blu rays would

A.	decrease by exactly $2.

B	decrease by less than $2.

C	stay the same.

D	decrease by more than $2.

2.If a tax is imposed on a market with inelastic demand and elastic supply, then

a.the tax burden will be shared equally between buyers and sellers.

b.sellers will bear most of the burden of the tax.

c.it is impossibe to determine how the burden of the tax will be shared.

d.buyers will bear most of the burdern of the tax.

3.Suppose that a tax is placed on Harry Potter books. If the buyers bear the smaller share of the tax burden, then we know that

a	demand is more inelastic than supply.

b	the government has required the sellers remit the tax payments.

c	supply is more inelastic than demand.

d	the government has required that buyers remit the tax payments.