When a Tax Is Lowered This Will

question 224

Multiple Choice

When a tax is lowered this will

• A)raise both demand and supply.
• B)lower both demand and supply.
• C)lower only supply.
• D)raise only supply.

---

Definitions:

Apples

A sweet, edible fruit produced by an apple tree, typically round in shape and available in many varieties.

Quasi-Rents

Earnings generated from a leased asset over and above the economic cost of utilizing the asset, often temporary due to market circumstances.

Production Functions

Mathematical equations that describe the relationship between input and output quantities in the production process.

Labor

The investment of human strength and thought in the process of producing goods and services.