A tax on sellers increases supply

Alex received a four-year scholarship to State U. that covered tuition and fees, room and board, and books and supplies. If Alex becomes a full-time student, then:

A. Alex has no incentive to study hard while at State U. B. the opportunity cost of attending State U. includes the sum of the benefits Alex would had from attending each of the other schools to which he was admitted. C. the opportunity cost of attending State U. includes the money Alex could have earned working for four years. D. attending State U. for four years is costless for Alex.

This graph depicts the demand for a normal good. Suppose Johnny was consuming a normal good at point A in the figure shown, but has just received a raise at work. Johnny's demand may:

A. increase to point B. B. be unaffected. C. drop to zero. D. increase to point C.