Charging a higher price for a motel room to customers with dogs or cats than to customers with no pets is most likely an example of a. thirdminusdegree price discrimination. b. firstminusdegree price discrimination. c. secondminusdegree price discrimination. d. actual cost differences.

What could explain why a decrease in taxes could lead to a less-than-proportionate increase in output? a. as a result of diminishing returns to current consumption, consumers may choose to spread the extra spending over the long term rather than consuming the proceeds of a tax cut all at once. b. consumers may choose to save much of the tax cut in anticipation of having to pay higher taxes in the future. c. a decrease in taxes will necessitate lower government outlays, thus largely offsetting the higher consumption expenditures of households. d. all of the above. e. a and b only.