As pollution emission levels increase, the marginal social benefit of pollution

Discuss the theory of the ability-to-pay principle

What will be an ideal response?

If the MPC is 0.8 and disposable income shrinks by $100 million. Consumption would

a. rise by $8 million b. rise by $80 million c. fall by $80 million d. fall by $8 million e. fall by $20 million