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Unformatted text preview: a. increase and both the demand for and prices of the resources used to produce the product to increase b. increase and both the demand for and prices of the resources used to produce the product to decrease c. Decrease; the demand for the resource used to produce the product will remain constant. d. Decrease; the price of resources used to produce the product will decrease. A- The demand for resources will increase when the demand for the product rises. 2) the ave. tax rate is defined as a. taxable income divided by tax liability b. change in tax liability divided by change in taxable income c. tax liability divided by taxable income d. change in taxable income divided by change in tax liability C- This is the formula for computing the ave. tax rate given in the text....
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This note was uploaded on 09/11/2008 for the course ECON 201 taught by Professor Douglas during the Spring '07 term at WVU.
- Spring '07