For a monopolist that engages in price discrimination, when the price elasticity in market 1 is less (in absolute value) than in market 2, the optimal price in market 1 will exceed the optimal price in market 2

To answer the next question, use the information in the table below which illustrates the multiplier process resulting from an autonomous increase in investment by $5. Change in IncomeChange in ConsumptionChange in SavingsAssumed increase in investment$5.00 $1.25Second round $2.81 All other rounds 8.44 Totals   5.00The change in income in round two will be

A. $2.81. B. $3.75. C. $0.94. D. $4.00.

The majority of economists would argue that an increase in taxes

A. has little or no effect on savings. B. dramatically decreases savings. C. slightly increases savings. D. dramatically increases savings.