If average total cost is falling marginal cost must also be falling

Suppose George's income is $10,000 and he pays a tax of $1,000 . but Laura's income is $50,000 and she pays a tax of $4,000 . Such a tax is:

a. regressive. b. progressive. c. proportional. d. flat.

Given the market for illegal drugs, when the government is successful in reducing the flow of drugs into the United States,

a. supply decreases, demand is unaffected, and price increases. b. demand decreases, supply is unaffected, and price decreases. c. demand and supply both decrease, leaving price essentially unchanged. d. supply decreases, demand increases, and price increases substantially.