A Decrease in Supply Means

question 109

Multiple Choice

A decrease in supply means:

• A) a shift to the left of the entire supply curve.
• B) moving downward (to the left) along the supply curve with lower prices.
• C) less will be demanded at every price.
• D) more will be supplied at every price.

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Definitions:

Regressive

Describes a tax or policy that disproportionately affects lower-income individuals, typically by taking a larger percentage of their income.

Payroll Tax

Burdens placed on employers along with their employees, customarily determined as a percentage of the staff's wages.

Corporate Profits Tax

A tax imposed on the income or profit of corporations.

Long Run

A time frame where every element of production and expenses can vary, enabling complete adaptation to any shifts.