Refer to the information provided in Figure 2.3 below to answer the question(s) that follow.Figure 2.3Refer to Figure 2.3. Assume that in this society the opportunity cost of sailboats in terms of surfboards is increasing. A graph of this society's production possibility frontier will be represented by Panel

Which of the following is correct? The supply curve will shift when

A) income, preferences, or the number of suppliers change. B) income, preferences, or the number of buyers change. C) income, preferences, or production technology changes. D) the number of sellers and the number of buyers change. E) production technology and input prices change.

A government wishing to maximize its tax revenues should

A) always assess the highest possible tax rate. B) always assess the lowest possible tax rate. C) determine the highest possible tax rate and then back it down by exactly 4 percentage points. D) push tax rates up to the point where revenues peak, but raise the tax rate no farther.