Refer to above Table 2-1. What is the level of National Income?

If Matthew raises the price of his muffins from $2 to $3 and his total revenue increases from $35,000 to $38,000 . then

a. the demand for Matthew's muffins in this price range is price elastic b. the demand for Matthew's muffins in this price range is price inelastic c. the demand for Matthew's muffins in this price range is unit elastic d. the percentage change in quantity demanded must exceed the percentage change in price e. we know this is impossible because it violates the law of demand

Figure 34.2 illustrates two labor supply curves. If in-kind payments become less available in this economy and marginal tax rates decrease significantly, we would expect a shift from

A. S2 to S1 and a movement up S1. B. S2 to S1 only. C. S1 to S2 only. D. S1 to S2 and a movement up S2.