Question

Raising business taxes would result in:

Answers:
A.
A rightward shift of the demand curve.

B.
A leftward shift of the demand curve.

C.
A rightward shift of the supply curve.

D.
A leftward shift of the supply curve.

Answer 1

Raising business taxes would result in a leftward shift of the supply curve.

Step-by-step explanation:

Raising business taxes would result in A leftward shift of the supply curve. When business taxes are increased, it increases the costs of production for businesses. This increase in costs decreases their profitability and reduces their incentive to produce and supply goods and services. As a result, the supply of goods and services in the market decreases, leading to a leftward shift in the supply curve.