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Suppose That the Price of Fertilizer,an Input in the Production

question 95

Multiple Choice

Suppose that the price of fertilizer,an input in the production of corn,rises.We would predict that the equilibrium quantity of corn will ________ and the equilibrium price of corn will ________.


Definitions:

Marginal Tax Rate

The percentage of an increase in income that is taxed away.

Average Tax Rate

The ratio of the total amount of taxes paid to the total taxable income.

Flat Tax

A tax system with a constant marginal rate, usually applied to individual or corporate income, where everyone pays the same percentage regardless of income level.

Income Taxes

Taxes levied by government on individuals' or corporations' income, where the tax rates can vary depending on the income level.

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