A tax rate system characterized by higher marginal tax rates as income increases is known as
A) a progressive tax system.
B) a regressive tax system.
C) a proportional tax system.
D) a flat-rate tax system.
Question 2
Holding supply constant, an increase in demand leads to
A) lower prices and higher quantity supplied.
B) lower prices and lower quantity supplied.
C) higher prices and higher quantity supplied.
D) higher prices and lower quantity supplied.
