Suppose that a $4 per unit tax is imposed on the sellers of DVDs. The effect of the tax will be to a. shift the supply curve up by exactly $4 and the price paid by buyers will remain unchanged. b. shift the supply curve up by exactly $4 and the price received by sellers will rise by exactly $4. c. shift the supply curve up by exactly $4 and the price paid by buyers will rise by less than $4. d. shift the demand curve down by exactly $4 and the price paid by buyers will fall by exactly $4.

C) shift the supply curve up by exactly $4 and the price paid by buyers will rise by less than $4.

Explanation:

A new tax will reduce the money received by the suppliers, which will result in a leftward shift of the supply curve. This means that the price of DVDs will increase at every level of quantity demanded. This will also decrease the total demand for DVDs since their price will increase.

Even though the tax is levied on the suppliers, both the suppliers and the consumers will suffer from it.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

750 h and costs $0.60 per bulb.