A government wishing to maximize its tax revenues should A) ...

[CBme]

A government wishing to maximize its tax revenues should
 
  A) always assess the highest possible tax rate.
  B) always assess the lowest possible tax rate.
  C) determine the highest possible tax rate and then back it down by exactly 4 percentage points.
  D) push tax rates up to the point where revenues peak, but raise the tax rate no farther.

Question 2

Other things being equal, a higher price induces
 
  A) buyers to reduce the amount they want to buy and sellers to increase the amount they are willing to sell.
  B) buyers to increase the amount they want to buy and sellers to reduce the amount they are willing to sell.
  C) buyers to reduce the amount they want to buy and sellers to reduce the amount they are willing to sell.
  D) buyers to increase the amount they want to buy and sellers to increase the amount they are willing to sell.

[Jevvish]

Answer to Question 1

D

Answer to Question 2

A

[CBme]

Thank you

[Jevvish]

Happy to help you