Figure 11-3

-In Figure 11-3, which line represents the change in the consumption schedule caused by an increase in the personal income tax?
A) C₁ in graph (a)
B) C₂ in graph (a)
C) C₁ in graph (b)
D) C₂ in graph (b)

Question

Figure 11-3
 
-In Figure 11-3, which line represents the change in the consumption schedule caused by an increase in the personal income tax?
A) C₁ in graph (a) 
B) C₂ in graph (a) 
C) C₁ in graph (b) 
D) C₂ in graph (b)

Quizplus · Accepted Answer

In graph (b), the consumption schedule shifts downward from C₁ to C₂ due to the increase in personal income tax, while in graph (a) the consumption schedule remains unchanged.

Figure 11-3 -In Figure 11-3, Which Line Represents the Change in the the Change