The Supply Curve for Dorm Rooms on a University Campus

question 102

Multiple Choice

The supply curve for dorm rooms on a university campus is likely to be _____

• A)downward sloping.
• B)relatively flat.
• C)vertical.
• D)horizontal.
• E)upward sloping.

---

Definitions:

Marginal Rate

The rate of increase in a variable (e.g., tax rate, substitution, technical substitution) as another variable (e.g., income, quantity of another good) increases incrementally.

Increase

An upward movement in quantity, value, or some other measure, indicating growth or accumulation.

Income Taxed

A government levy on individual or corporate income.

Regressive Tax Structure

A tax system where the tax rate decreases as the taxable amount increases, placing a higher burden on low-income earners compared to high-income earners.