Song earns $117,500 taxable income os an interior designer and is taxed at an average rate of 15 percent (ire., $17625 of tax) a. If Congress increases the income tax rate such that Songis average rax rate increases from 15 percent to 20 percent, how much more income tax will she pay assuming that the income effect is descriptive? (Round your intermediate calculations and final answer to 2 decimal piacest) b If the income effect is descriptive, the tax base and the tax collected will increase. True False Song edrns $104,000 taxable income as an interior designer and is taxed at an avetage rate of 20 percent lles $20,800 of tax): Answer the questions below assuming that Congress increases the income tax rate such that Song's average tax rate increases from 20 peccent to 25 percent. a. What will happen to the government's tax revenues if Song chooses to spend more time pursuing her other passions besides work In response to the tax rate change and therefore earns only $78,000 in taxable income? Government's tax revenues would decrease by $1,300 Government's tax revenues would increase by $1,300 Government's tax revenues would decrease by $1,550. Government's tax revenues would increase by $1,550 Government's tax revenues would remain unchanged b. What is the term that describes this type of reaction to a tax rate increase? Income effect Budget constraint