Tom's marginal utility of Mountain Dew exceeds his marginal utility of crackers at his consumer equilibrium. Therefore, his consumer surplus from Mountain Dew must exceed his consumer surplus from crackers

Equilibrium

What will be an ideal response?

As the consumption and saving schedules relate to real GDP, an increase in taxes will shift:

A.  Upward both the consumption and saving schedules B.  Downward both the consumption and saving schedules C.  The consumption schedule upward and the saving schedule downward D.  The saving schedule upward and the consumption schedule downward