An advantage of a unit tax is that the relative price changes ...

[jenna1]

An advantage of a unit tax is that the relative price changes have no effect on the tax per unit.
 
  a. True b. False

Question 2

If an increase in income results in a rightward parallel shift of the demand curve, then at any given price, the price elasticity of demand will have
 
  A) increased in absolute terms.
  B) decreased in absolute terms.
  C) remained unchanged.
  D) increased, decreased or stayed the same. It cannot be determined.

[diana chang]

Answer to Question 1

a

Answer to Question 2

B