Suppose income-tax rates are increased and as a result consumers experience a decrease in income earned from working. Basic microeconomics predicts that, Demand for normal goods will rise. Demand for...


Suppose income-tax rates are increased and as a result consumers experience a decrease in income earned from working.  Basic microeconomics predicts that,





Demand for normal goods will rise.



Demand for inferior goods will rise.



Demand for normal goods will fall.



Demand for inferior goods will rise and demand for normal goods will fall.




Jun 07, 2022
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