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q16 will be E3 because the level of expenditure has completely changed therefore it will go up but since the tax rates have also increased,the slope will go downwards indicating saving.
ok this is embarassing.I have been posting so many qs and answers that I have seemed to forgotten my queries. Which year is this again?
ok this is embarassing.I have been posting so many qs and answers that I have seemed to forgotten my queries. Which year is this again?
The quantity theory of money supply...
oh ok,you were answering the 3 qs which youzair had asked and tagged me as I didn't know the second q. Mystery solved
Firstly I also thought that it would be B, but I think its the other way round, a tricky one, the number of import quota are further reduced, read the question carefully you will get it.
Pareto efficient occurs when it is not possible to make someone better off without making someone worse off.
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