-Refer to Figure 9-15.What causes the supply to change from S 1 to S 2 at the same time demand changes from D 1 to D 2 ?

A decrease in capital gains tax and corporate profits tax can increase supply by making investments more attractive and profitable, while also increasing demand by leaving more disposable income for consumers and businesses.

-Refer to Figure 9-15.What causes the supply to change from S 1 to S 2 at the same time demand changes from D 1 to D 2 ?

A decrease in capital gains tax and corporate profits tax can increase supply by making investments more attractive and profitable, while also increasing demand by leaving more disposable income for consumers and businesses.

Solved

-Refer to Figure 9-15

Question 159

Multiple Choice

-Refer to Figure 9-15.What causes the supply to change from S₁ to S₂ at the same time demand changes from D₁ to D₂?

A) The investment tax credit increases.
B) The capital gains tax decreases while the corporate profits tax decreases.
C) The capital gains tax increases while the investment tax credit increases.
D) The capital gains tax decreases while the investment tax credit stays constant.
E) The capital gains tax decreases while the corporate profits tax increases.

Correct Answer: