You are a government tax policy advisor. You are asked how to convert the U.S. income tax into a consumption tax. Which of the following is the best response?

With respect to diffusion of responsibility,

A) the larger the group, the more likely that any one individual will act. B) the larger the group, the less likely that any one individual will act. C) the size of the group has no bearing on the likelihood of any one individual to act. D) individuals are likely to take no action only if the group of individuals is small.

If demand is unit elastic, an increase in price will lead to an increase in total revenue

Indicate whether the statement is true or false