If Joe earns $80,000 per year and pays $20,000 in taxes, while Moe earns $100,000 and pays $22,000 in taxes, their tax system would best be described as:

The law of supply tells us that other things remaining the same, as the:

a) cost of producing gasoline increases, the price of gasoline rises. b) price of gasoline falls, the quantity of gasoline supplied decreases. c) supply of gasoline increases, the price of gasoline falls. d) cost of producing gasoline falls, the supply of gasoline will increase. e) price of gasoline rises, the quantity of gasoline supplied decreases.

George has a $600 annual entertainment budget that he uses to buy trips to the movies and dinners at local restaurants. The figure above shows indifference curves and budget lines for these two goods. The price of a movie is $15

a) Along budget line BL1, what is the price of a dinner? b) What combination of dinners and movies will George select along budget line BL1? c) Budget line BL2 represents a change in the price of dinners from that along BL1. What is the new price of dinners along this budget line? d) What combination of dinners and movies will George select along budget line BL2? e) Use the information in this problem to give two points on George's demand curve for dinners.