If a new tax policy relatively raises the tax rate 2.5 percent but causes the output supplied to fall by 15 percent, the absolute value of the tax elasticity of supply is

The branch of economics which studies how households and firms interact in markets is called

A) macroeconomics. B) positive economics. C) normative economics. D) microeconomics.

A change in input prices will change the location of the budget line

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