Question

When taxes in a market are extremely high, increasing the tax rate will likely _____________ tax revenue and _________________ dead weight loss

A. decrease, increase

B. increase, increase

C. decrease, decrease

D. increase, decrease

When a country enters the world market and becomes an importer, consumer surplus will ___________ and producer surplus will _______________ .

A. increase, decrease

B. increase, increase

C. decrease, decrease

D. decrease, increase