If the price elasticity of supply of a good is 2, a 200% increase in the price of the good, will change the quantity supplied by:

Given the demand curve for laptop computers, if the government began to encourage households to own a computer by providing a subsidy to each family that buys one,

a. both the equilibrium price and quantity of laptops will increase b. both the equilibrium price and quantity of laptops will decrease c. the equilibrium price of laptops will increase but the equilibrium quantity will decrease d. the equilibrium price of laptops will decrease but the equilibrium quantity will increase e. subsidies to households have no effect on either the supply or demand

Why do some policymakers support a consumption tax rather than an earnings tax?

a. The average tax rate would be lower under a consumption tax. b. A consumption tax would encourage people to save earned income. c. A consumption tax would raise more revenues than an income tax. d. The marginal tax rate would be higher under an earnings tax.