If demand is unit-elastic, then a $5 decrease in price will lead to an increase in quantity demanded by 5 units

Society might argue that there are cases in which it is appropriate to resist price increases in situations where scarcity is serious. Included would be the case of

a. unrestrained monopoly that would otherwise succeed in gouging the public. b. taxes imposed on products capriciously and inappropriately. c. rising prices falling so heavily on the poor that rationing becomes preferable. d. All of the above are correct.

If California decides to pay for public radio by taxing people based on the number of hours they listen based on voluntary self-reporting, then which of the following is likely to occur as a consequence?

a. Many individuals will overstate the number of hours they listen to public radio to government in order to receive a higher tax bill. b. People who report listening quite a few hours and have a high income will pay a larger proportion of their income in public radio tax than people who report the same number of hours and have a low income. c. Many individuals will understate the number of hours they listen to public radio to government in order to reduce their tax bill. d. Many individuals will overstate the number of hours they listen to public radio to government in order to receive a lower tax bill.