A tax system in which the tax rate on everyone's first $10,000 of income is 10 percent, the tax rate on everyone's second $10,000 of income is 15 percent, and the tax rate on all income over $20,000 is 25 percent is a(n):

The _____________ the size of the potential customer base for a given product (for example, music), the ______________ is the variety of goods we are likely to see

A) larger; greater B) smaller; smaller C) larger; smaller D) smaller; greater E) a and b

Figure 10-1

At which point in is the economy at long-run equilibrium?
a.
A
b.
B
c.
C
d.
D