An increase in the tax wedge associated with a given economic activity will decrease the level of that activity.
Indicate whether the statement is true or false
Question 2
What is the difference between an increase in demand and an increase in quantity demanded?
A) An increase in demand is represented by a movement along a given demand curve, while an increase in quantity demanded is represented by a rightward shift of the demand curve.
B) There is no difference between the two terms; they both refer to a movement downward along a given demand curve.
C) An increase in demand is represented by a rightward shift of the demand curve while an increase in quantity demanded is represented by a movement along a given demand curve.
D) There is no difference between the two terms; they both refer to a shift of the demand curve.
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