Consider the Graph Shown

question 141

Multiple Choice

Consider the graph shown. What would most likely be the cause of a shift from D1 to D2?

• A) A tax on sellers
• B) A tax on buyers
• C) A subsidy for sellers
• D) A subsidy for buyers

---

Definitions:

Normal Conditions

Usual or expected conditions under which a company operates, reflecting a standard or average level of activity.

Variable Budget

A budget that adjusts in response to changes in activity levels or other factors, as opposed to a fixed budget.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate forecasting and analysis.

Static Budget

A fixed budget that remains unchanged over a period, regardless of variations in actual sales volume, production levels, or other operating factors.