In the above figure, a negative relationship is demonstrated in which of the graphs?

Refer to Figure 8.2. Holding other variables constant, an increase in income taxes will result in a

A) movement from point A to point B. B) movement from point B to point A. C) shift from curve S1 to curve S2. D) shift from curve S2 to curve S1.

As people have more time to adjust to a price change,

a. demand becomes more elastic, and supply becomes less elastic. b. demand becomes less elastic, and supply becomes more elastic. c. both supply and demand become less elastic. d. both supply and demand become more elastic. e. elasticity of both demand and supply tends toward unity.