Use the Graphs Below to Answer the Following Questions

question 12

Essay

Use the graphs below to answer the following questions: (a) What types of schedules do graphs A and B represent?
(b) If in graph A line A2 shifts to A3 because households consume more and this change is not due to changing taxes, then what would happen to line B2 in graph B?
(c) If in graph B, line B2 shifts to B1 because households save less, then what will happen to line A2 in graph A?
(d) In graph A, what has caused the movement from point A to point B on line A2?
(e) If there is a lump-sum tax increase causing line A2 to shift to A1, then in graph B, what will happen to B2?

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Definitions:

Coercive Power

A form of authority that relies on the threat of force or sanctions to influence others' behavior and compliance.

Bases of Individual Power

Refers to the sources from which an individual derives their ability to influence others, such as expertise or position.

Rosabeth Moss Kanter

A renowned professor of business at Harvard Business School, known for her research on change management and confidence.

Power

The ability or capacity to influence or control the behavior of others, often through the possession of knowledge, resources, or authority.