Jim has estimated elasticity of demand for gasoline to be -0.7 in the short-run and -1.8 in the long run. A decrease in taxes on gasoline would:
a. lower tax revenue in both the short and long run.
b. raise tax revenue in both the short and long run

A monopoly advertises

A) to raise its profit. B) to decrease costs. C) dissuade entry by other firms. D) reduce deadweight loss.

The quantity of good Y is measured along the vertical axis, and the quantity of good X is measured along the horizontal axis. If the prices of both good Y and good X rise, the budget line

A) shifts outward to the right and the vertical and horizontal intercepts will both rise. B) shifts inward to the left and both intercepts will decline. C) rotates, rising along the vertical axis but falling along the horizontal axis. D) none of the above.