Which curve shifts and in which direction when the following events occur in the

ID: 1139512 • Letter: W

Question

Which curve shifts and in which direction when the following events occur in the tax accounting market?

a. "It is almost tax day (April 15)!"

Demand decreases.

Demand increases.

Supply increases.

Supply decreases.

Neither curve changes.

b. A new software is developed that helps individuals file their taxes on their own.

Demand decreases.

Supply decreases.

Demand increases.

Neither curve changes.

Supply increases.

c. There is a change in the law and tax accountants now only need one year of training to prepare taxes.

Supply increases.

Demand increases.

Supply decreases.

Neither curve changes.

Demand decreases.

Which curve shifts and in which direction when the following events occur in the tax accounting market?

a. "It is almost tax day (April 15)!"

demand increases.Shifts to right . On the last day, people generally pay taxes to avoid penalty and hence supply of tax declarations will increase.

b. A new software is developed that helps individuals file their taxes on their own.

Supply increases. Supply shifts to right. It makes tax declaration easy and hence number of declarations will go up.

c. There is a change in the law and tax accountants now only need one year of training to prepare taxes.

Neither curve changes as tax accountants only support tax declarations.

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