QUESTION 40 The government under which Sarah lives taxes the incomes ofits citizens using a proportional-tax (a "flat-tax") system. If Sarah's income doubles this year compared to last year, the amount of dollars that Sarah will pay in income taxes this year compared to last year will be a. less than last year. ' b. the same as last year. ' c. more than last year. 7 d. There is insufficient information to answer this questions. QUESTION 41 Which of the following situations or changes will result in a fall in the price of styrofoam cups? (Assume that no price controls are in place.) a. The current price of styrofoam cups is above the equilibrium price for styrofoam cups. ' b. The price of coffee, which is a good complementary to styrofoam cups, rises. ' c. The price of paper cups, which are substitute goods for styrofoam cups, falls. ' d. Styrofoam cups are an inferior good and consumers' incomes rise. ' a. All of the above