Which of the following will occur as the price of a good decreases?
A) The demand curve for that good will shift to the left.
B) The demand curve for that good will shift to the right.
C) The quantity demanded for that good will increase.
D) Demand for that good will increase.
Question 2
Suppose the tax amount on the first 10,000 income is 0; 2000 on the next 20,000; 4000 on the next 20,000; 6000 on the next 30,000; and 40 percent on any income over 80,000. Family A has income of 30,000 and Family B has income of 80,000.
What is the marginal and average tax rate for each family? A) Family A: marginal10 percent; average6.7 percent; Family B: marginal30 percent; average15 percent.
B) Family A: marginal10 percent; average20 percent; Family B: marginal30 percent; average23 percent.
C) Family A: marginal10 percent; average10 percent; Family B: marginal40 percent; average40 percent.
D) Family A: marginal10 percent; average15 percent; Family B: marginal40 percent; average20 percent.
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