Refer to the Accompanying Diagram to Answer the Following Questions

question 28

Multiple Choice

Refer to the accompanying diagram to answer the following questions :

-The demand curve shift shown in the figure was caused by a(n)

• A) increase in the input cost of the good.
• B) increase in the price of a substitute of the good.
• C) decrease in the number of firms selling the good.
• D) decrease in the number of buyers in the market for the good.
• E) expectation that the future price of this good will be higher than it is currently.

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Definitions:

Medicare Taxes

Taxes collected from employees and employers to fund the Medicare program, which provides healthcare benefits to retirees.

State Income Taxes

Taxes imposed by individual states on the income generated by businesses and individuals within that state.

Liability Account

A type of accounting record that shows the obligations or debts a company owes to others.

Withheld FICA Taxes

Taxes deducted from employees' paychecks to fund Social Security and Medicare, which employers also match.