If money income increases and the prices of products A and B both increase, then the budget line:

A. must shift to the right.
B. must shift to the left.
C. may shift either to the right or the left, or not at all.
D. will no longer be tangent to an indifference curve.

Answer: C

Economics

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If Kate pays an average tax rate of 12.5% and her total income is $34,000, she pays ________ as tax

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Refer to Figure 3-5. At a price of $5, the quantity sold

A) is 2 units. B) is 4 units. C) is 6 units. D) cannot be determined.

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