If Both the Supply and Demand Curves Shift to the Left

question 278

Multiple Choice

If both the supply and demand curves shift to the left, then we can conclude that there will be

• A) an increase in the equilibrium quantity sold.
• B) a decrease in the equilibrium quantity sold.
• C) an increase in the equilibrium price.
• D) a decrease in the equilibrium price.

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Definitions:

Tax Liability

Tax liability is the total amount of tax that an individual or organization is legally obligated to pay to a taxing authority based on earnings, property ownership, or other taxable conditions.

Earned Income Tax Credit

A tax credit in the United States designed to benefit individuals and families with low to moderate incomes, effectively reducing the amount of tax owed and possibly resulting in a refund.

Minimum-Wage Laws

Legislation that sets the lowest hourly wage rate that an employer can legally pay their workers.

In-Kind Transfers

Non-monetary transfers of goods or services provided by governments to individuals as part of social assistance programs.