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

Question

Quizplus · Accepted Answer

If buyers pay the majority of the tax, it indicates that they are willing to bear the burden of the tax, which implies that they have a relatively inelastic demand for books. In contrast, if supply were more inelastic than demand, suppliers would have to bear most of the tax burden, which would result in a decrease in the supply of books. Therefore, option A is the correct answer.

Suppose That a Tax Is Placed on Books