-In the above figure, the curve labeled A shifts rightward if
A) the substitution effect occurs.
B) expected future profits decrease.
C) the quantity of money decreases.
D) taxes decrease.

Question

-In the above figure, the curve labeled A shifts rightward if
A) the substitution effect occurs. 
B) expected future profits decrease. 
C) the quantity of money decreases. 
D) taxes decrease.

Quizplus · Accepted Answer

A rightward shift in the curve labeled A would occur if taxes decrease, as this would increase disposable income or profits, leading to higher demand or investment.

-In the Above Figure, the Curve Labeled a Shifts Rightward