Scarcity requires that people must

A normal good is defined as a good

A) for which demand increases when income increases. B) with a downward sloping demand curve. C) for which demand increases when the number of demanders increases. D) for which demand increases when the price of a substitute rises. E) for which demand increases when the price of a complement falls.

The deadweight loss of taxation on a good is higher if ________

A) the demand or the supply of the good is relatively price elastic B) a progressive tax system is practiced C) a low rate of tax is imposed on the sale of the good D) there is only one seller in the market