A Decrease in Input Prices Will Cause

question 80

Multiple Choice

A decrease in input prices will cause

• A)AD to increase (move to the right).
• B)AD to decrease (move to the left).
• C)AS to increase (move to down and to the right).
• D)AS to decrease (move to up and to the left).

---

Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income level, type of earnings, and other factors.

Tax Base

The Tax Base is the total amount of assets, income, or other taxable items upon which a government levies taxes.

Tax Liability

The total amount of tax owed by an individual or a corporate entity to tax authorities.

Tax Rate Structure

The way tax rates progress from low to high based on income brackets, affecting how much tax individuals or entities owe.