Author Question: After the price of milk increases, David buys more eggs and less cereal. For David A) milk, eggs, ... (Read 157 times)

ghost! · **on:** Jun 29, 2018

After the price of milk increases, David buys more eggs and less cereal. For David

A) milk, eggs, and cereal are all complements.
B) milk and eggs are complements, and milk and cereal are substitutes.
C) milk and eggs are substitutes, and milk and cereal are complements.
D) milk, eggs, and cereal are all substitutes.

Question 2

Ad valorem taxation means

A) that only the value added by a service provider is taxed.
B) that the tax rate is a percentage of the price paid for a product.
C) a negative income tax.
D) a progressive property tax imposed in some states.