If the ________ effect is greater than the ___________ effect,a tax cut will increase revenues.
A) price; quantity
B) quantity; income
C) income; price
D) quantity; price
Correct Answer:
Verified
Q69: When tax rates fall,people tend to:
A) increase
Q70: The _ tells us when the government
Q71: The question of how people's behavior changes
Q72: It is more likely at lower tax
Q73: When raising taxes,the price effect tells us
Q75: Raising taxes:
A) always raises tax revenues.
B) always
Q76: If the price effect outweighs the quantity
Q77: The _ tells us when the government
Q78: The idea that people change their behavior
Q79: A $0.50 tax on lemons currently generates
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