Refer to Table 3-1. The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia) and the rest of the market. If the price of loose-leaf tea rises from 3 to 4, the market quantity demanded would
A) decrease by 32 lbs. B) increase by 64 lbs. C) decrease by 64 lbs. D) increase by 32 lbs.
Question 2
FICA is a payroll tax imposed on employers and workers that is used to fund Social Security and Medicare. Which of the following statements regarding the tax is true?
A) Most economists believe the burden of the tax falls almost entirely on workers.
B) Congress wanted the burden of the tax to be greater for employers than for workers.
C) Most economists believe the burden of the tax falls mostly on employers.
D) Employers are required to pay a greater share of the tax than workers but most economists believe the burden of the tax is shared equally.
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