Bid is a product of the baldwin company which is primarily in the nano segment, but is also sold in another segment. baldwin starts to create their sales forecast by assuming all policies (r& d, marketing, and production) for all competitors are equal this year over last. for this question assume that all 1128 of units of bid are sold in the nano segment. if the competitive environment remains unchanged what will be the bid product’s demand next year (in 000’s)?

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.