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)!"O Neither curve changes.O Supply decreases.O Supply increases.O Demand decreases.Demand increases.b. A new software is developed that helps individuals file their taxes on their own.O Supply decreases.O Supply increases.Demand decreases.O Demand increases.O Neither curve changes. c. There is a change in the law and tax accountants now need only one year of training to prepare taxes.O Demand increases.Supply increases.Supply decreases.O Neither curve changes.O Demand decreases.

Answered: Which curve shifts and in which…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Application: The Cost Of Taxation

Section: Chapter Questions

Problem 4CQQ

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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)!"
O Neither curve changes.
O Supply decreases.
O Supply increases.
O Demand decreases.
Demand increases.
b. A new software is developed that helps individuals file their taxes on their own.
O Supply decreases.
O Supply increases.
Demand decreases.
O Demand increases.
O Neither curve changes.

c. There is a change in the law and tax accountants now need only one year of training to prepare taxes.
O Demand increases.
Supply increases.
Supply decreases.
O Neither curve changes.
O Demand decreases.

Expert Solution

Step 1

a) Answer:- Demand increases.

Explanation:- On tax day, ever more individual are going to look to really get their taxes accomplished, increasing the demand for tax accountant which will cause rightward shift in the demand curve.

Therefore, option e is correct.

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