Which of the following statements about demand and supply accurately describes the direction one of the curves will take if one variable is altered?
A) The supply curve will shift to the left if taxes are decreased.
B) The demand curve will shift to the left if buyers' incomes increase.
C) The demand curve will shift to the right if the number of buyers decreases.
D) The supply curve will shift to the left if the number of suppliers increases.

Question

Quizplus · Accepted Answer

The supply curve will shift to the left if taxes are decreased because taxes are a cost of production, and if taxes decrease, the cost of production will decrease, which will lead to an increase in supply.

Which of the Following Statements About Demand and Supply Accurately