In the above figure, the relationship between the tax rate and ...

[2125004343]

In the above figure, the relationship between the tax rate and tax revenue is positive and becoming less steep between tax rates of
 
  A) 0 percent and 30 percent.
  B) 30 percent and 100 percent.
  C) 0 percent and 100 percent.
  D) None of the above answers are correct.

Question 2

If the price elasticity of supply of a good is 2, a 200 increase in the price of the good, will change the quantity supplied by:
 
  A) 50.
  B) 100.
  C) 200.
  D) 400.

[aburgess]

Answer to Question 1

A

Answer to Question 2

D