The Earned Income Tax Credit replaced many government transfer programs

When disposable income increases, consumption expenditure

A) also increases, but by less. B) also increases, and by an equal amount. C) decreases by the same amount. D) does not change. E) also increases, and by more.

Assume that the price for swimming pool maintenance services has risen and sales of these services have fallen. One can conclude that

A) the demand for swimming pool maintenance services has increased. B) swimming pool maintenance services are becoming more technologically advanced. C) the law of supply has been violated. D) the supply of swimming pool maintenance services has decreased.