For the following questions use Figure 16.1 below.
-Consider Figure 16.1.If there is a decrease in the corporate tax rate,then curve __________ would shift to curve __________.
A)d;c
B)b;a
C)c;d
D)a;b
E)not enough information

Question

For the following questions use Figure 16.1 below. 
-Consider Figure 16.1.If there is a decrease in the corporate tax rate,then curve __________ would shift to curve __________.
A)d;c 
B)b;a 
C)c;d 
D)a;b 
E)not enough information

Quizplus · Accepted Answer

A decrease in the corporate tax rate would likely increase after-tax profits, encouraging more investment and production, which would shift the supply curve from c to d.

For the Following Questions Use Figure 16