In the above figure, the economy is initially at point B. If taxes increase, there is
A. a movement to point C.
B. a movement to point A.
C. a shift to AD 2 .
D. a shift to AD 1 .
Answer:C
In the above figure, the economy is initially at point B. If taxes increase, there is
A. a movement to point C. B. a movement to point A. C. a shift to AD 2 . D. a shift to AD 1 .