Figure 12-2

-The demand D₁ and short-run supply SSR of accountants is indicated in Figure 12-2.Which of the following would most likely shift the demand for accountants from D₁ to D₂?
A)an increase in the number of accounting majors in college
B)enacting legislation that increases the complexity of personal and business tax returns
C)high wages for accountants
D)a reduction in the wages of bookkeepers,a substitute resource for accountants

Question

Figure 12-2
 
-The demand D₁ and short-run supply SSR of accountants is indicated in Figure 12-2.Which of the following would most likely shift the demand for accountants from D₁ to D₂?
A)an increase in the number of accounting majors in college 
B)enacting legislation that increases the complexity of personal and business tax returns 
C)high wages for accountants 
D)a reduction in the wages of bookkeepers,a substitute resource for accountants

Quizplus · Accepted Answer

Enacting legislation that increases the complexity of personal and business tax returns would likely cause businesses and individuals to seek out more accountants to handle the increased complexity, shifting the demand curve to the right from D₁ to D₂. The other options do not directly affect the demand for accountants. An increase in the number of accounting majors in college could potentially increase the supply of accountants, reducing wages, but it would not necessarily shift the demand curve. High wages for accountants and a reduction in wages for bookkeepers would affect the supply of accountants and substitutes, respectively, but not the demand for accountants.

Figure 12-2 -The Demand D₁ and Short-Run Supply SSR of Accountants Is