Use the Following Figure to Answer the Question

question 137

Multiple Choice

Use the following Figure to answer the question :
-If we go from point R on demand curve D1 to point S on demand curve D2, then we may conclude that there was

• A)an increase in quantity demanded.
• B)a decrease in quantity demanded.
• C)an increase in demand.
• D)a decrease in demand.

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Definitions:

Luxury Tax

A tax imposed on expensive goods and services, often considered non-essential, as a means of raising government revenues without placing the burden on essential items.

Tax Incidence

The distribution of the economic burden of a tax between buyers and sellers, depending on the elasticity of demand and supply.

Net Profits

The actual profit after working expenses not included in the calculation of gross profit have been paid.

Goods And Services

Refers to the tangible products (goods) and intangible items (services) produced and offered in an economy.