Refer to the graph. If the economy is in initial equilibrium at AD $A D _ { 1 } \text { and } A S _ { 1 }$ , then, from a strict supply-
Side perspective, a cut in taxes or tax rates would produce an equilibrium price and quantity of
A) $P _ { 1 } \text { and } Q _ { 1 } \text {. }$
B) $P _ { 2 } \text { and } Q _ { 2 }$
C) $P _ { 3 } \text { and } Q _ { 3 }$
D) $P _ { 4 } \text { and } Q _ { 4 }$

Question

Refer to the graph. If the economy is in initial equilibrium at AD $A D _ { 1 } \text { and } A S _ { 1 }$ , then, from a strict supply-
Side perspective, a cut in taxes or tax rates would produce an equilibrium price and quantity of
A) $P _ { 1 } \text { and } Q _ { 1 } \text {. }$ 
B) $P _ { 2 } \text { and } Q _ { 2 }$ 
C) $P _ { 3 } \text { and } Q _ { 3 }$ 
D) $P _ { 4 } \text { and } Q _ { 4 }$

Quizplus · Accepted Answer

The Answer of  Refer to the graph. If the economy is in initial equilibrium at AD $A D _ { 1 } \text { and } A S _ { 1 }$ , then, from a strict supply-
Side perspective, a cut in taxes or tax rates would produce an equilibrium price and quantity of
A) $P _ { 1 } \text { and } Q _ { 1 } \text {. }$ 
B) $P _ { 2 } \text { and } Q _ { 2 }$ 
C) $P _ { 3 } \text { and } Q _ { 3 }$ 
D) $P _ { 4 } \text { and } Q _ { 4 }$

Refer to the Graph AD1 and AS1A D _ { 1 } \text { and } A S _ { 1 }AD1​ and AS1​

Refer to the Graph $A D _ { 1 } \text { and } A S _ { 1 }$