2009 MC 11 PP1

A. (wrong)
law of demand says nothing about elasticity

B.(correct)
when there is an income tax exemption,
disposable income increases.
As more money can be used in raising children,
thre demand for children increase so as the birth rate

C.(wrong)
An ad valorem tax only affect the absolute price of goods
so no effects can be drawn

D.(wrong)
when price increase. the quantity demand for long-distance-trip taxi will decrease rather than decrease