QUESTION 13

True or false: As with elasticities of demand, there are differences in the elasticities of supply.

1. True
2. False

QUESTION 14

Which of the following can never occur in reality?

1. a cut in income-tax rates raises income-tax revenue
2. a cut in income-tax rates decreases income-tax revenue
3. a rise in income-tax rates raises income-tax revenue
4. a rise in income-tax rates decrease income-tax revenue
5. Each of the above is possible in reality