Figure: Demand Shift in the Figure, the Demand Curve

question 192

Multiple Choice

Figure: Demand Shift In the figure, the demand curve shifted from D₀ to D₁. To describe this movement, we would say that:

• A) demand increased, which caused an increase in supply.
• B) quantity demanded increased, which caused an increase in supply.
• C) demand increased, which caused an increase in quantity supplied.
• D) quantity demanded increased, which caused an increase in quantity supplied.

---

Definitions:

Income Tax

Income tax is a tax levied by governments on individuals or entities based on their income or profits, with rates varying according to income levels.

Consumption

Households utilizing products and services for their needs.

Horizontal Equity

The principle that individuals with similar income and ability should be treated equally by the taxation system, ensuring fairness.

Economic Income

The total value of all earnings received over a period of time, including wages, rental income, interest, and profits.