When the demand for a product is less elastic than the supply, ...

[Engineer]

When the demand for a product is less elastic than the supply, consumers pay the majority of the tax on the product.
 
  Indicate whether the statement is true or false

Question 2

If you transfer all of your currency to your checking account, then initially, M1 will ________ and M2 will ________.
 
  A) not change; not change B) decrease; increase
  C) increase; not change D) not change; increase

[Alyson.hiatt@yahoo.com]

Answer to Question 1

TRUE

Answer to Question 2

A