There is an increase in demand for personal computers at the same time their input costs fall. We would expect that:
a. price will fall, but the effect on quantity sold is uncertain.
b. the quantity sold will decline, but the effect on price is uncertain.
c. the quantity sold will increase, but the effect on price is uncertain.
d. price will rise, but the effect on quantity sold is uncertain.
Question 2
Which of the following tax changes would a supply-side economist be most likely to favor?
a. eliminating an investment tax credit
b. an increase in the capital gain tax
c. lower marginal income tax rates
d. an increase in the personal income tax rate for high-income individuals
Fall
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