The Below Table Shows the Average Utility (In Utils) Obtained

Multiple Choice

The below table shows the average utility (in utils) obtained from the consumption of goods A and B.Table 7.3

-According to the law of diminishing utility, _____.

A) the same tax rate should be applied to every dollar
B) the rich people should have a lower tax rate as compared to poor people
C) the rich people should have a higher tax rate as compared to poor people
D) the total burden on the society from a tax will be less if proportional taxation is used
E) the poorer people should not be taxed at all