The greater the magnitude of the absolute value of the income ...

[natalie2426]

The greater the magnitude of the absolute value of the income elasticity of demand for a good, the more the
 
  A) demand for that good changes when income changes.
  B) total revenue for firms producing that good changes when income changes.
  C) price of the good changes when income changes.
  D) All of the above answers are correct.

Question 2

The above figure shows the market for anti-freeze. The government imposes the sales tax shown in the figure on sellers. Automobile owners would pay a larger part of this tax than what is shown in the figure if the
 
  A) demand were more elastic.
  B) demand were more inelastic.
  C) supply were more inelastic.
  D) None of the above because the buyers always pay the entire amount of the tax.

[Athena23]

Answer to Question 1

D

Answer to Question 2

B

[natalie2426]

Thanks for the timely response, appreciate it

[kthug]

Great answer, keep it coming