It is more likely at lower tax rates than higher tax rates that the:
A. quantity effect will outweigh the price effect.
B. quantity effect will outweigh the income effect.
C. price effect will outweigh the quantity effect.
D. income effect will outweigh the price effect.
C. price effect will outweigh the quantity effect.
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Business firms are prohibited by law from borrowing money from banks.
Answer the following statement true (T) or false (F)
Which of the following is most likely to cause a rightward shift of the investment demand curve?
a. An increase in income b. A decrease in the market interest rate c. An improvement in business expectations d. An increase in the market rate of interest e. A decrease in income
Which of the following statements is correct? Select one:
a. The human desire for goods and services is limited while the resources required for their production are unlimited. b. The human desire for goods and services is virtually unlimited while the resources required for their production are limited. c. Both the human desire for goods and services and the resources required for their production are virtually unlimited. d. Both the human desire for goods and services and the resources required for their production are limited
For a normal good, an increase in consumer income will lead to I. a movement down the demand curve II. a rightward shift in the demand curve III. a reduction in supply
A) I only. B) II only. C) III only. D) both II and III.