Which of the Following Will Not Cause an Increase in the Equilibrium

question 28

Multiple Choice

Which of the following will not cause an increase in the equilibrium price?

• A)a shortage of labour
• B)an invention that makes capital more productive
• C)a fall in the price of a complement
• D)an increase in the price of a substitute

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Definitions:

Income Inequality

The uneven distribution of income within a population, where earnings are not equally distributed among individuals or groups.

Progressive Income Tax

A tax system where the tax rate increases as the taxable income of the taxpayer increases, aiming at a more equitable distribution of wealth.

After-Tax Lorenz Curve

A graphical representation that shows the distribution of income or wealth within an economy after accounting for taxes.

Before-Tax Lorenz Curve

A graphical representation that shows the distribution of income or wealth among individuals or households before taxes are applied.