Suppose Paul has chosen a combination of two goods, A and B, such that the marginal utility per dollar spent for good A (MUA/PA) is .6 and the marginal utility per dollar spent for good B (MUB/PB) is 1. To increase utility with the same amount of money, Paul should:

A flat tax plan with a standard deduction of $25,000 in income and a tax rate of 20% would require an individual earning $100,000 to pay $15,000 in income taxes

a. True b. False Indicate whether the statement is true or false

Suppose the equilibrium price for pizza is $5 . If the government sets price at $4, the result would be

a. a shortage because at $4, the quantity demanded would exceed the quantity supplied b. a surplus because at $4, the quantity demanded would be less than the quantity supplied c. that the market would remain in equilibrium, but with a larger quantity bought and sold at $5 d. that at $4, the quantity sold would be greater than the quantity bought e. that at the equilibrium price of $5, fewer units would be sold