Question

1. (01.03 mc)

market demand
based on the graph, what would it mean if quantity falls from 500 units to 300 units? (4 points)
the price increased.
the demand increased.
the price decreased.
the demand decreased.

1. (01.07 lc)

which tax uses the same rate for all income levels? (4 points)
corporate
proportional
progressive
regressive

Explanation:

1. For the demand - quantity graph, as it's a downward - sloping demand curve, a fall in quantity from 500 to 300 means price increased (law of demand).
2. A proportional tax has the same rate for all income levels.

Answer:

1. The price increased.
2. Proportional