Cost-reducing technological advancements allow suppliers to earn more profits but have no noticeable effect on the supply curve

Refer to Figure 17-1. Suppose the market price of doilies rises to $3. What happens to the curve given in the diagram?

A) There will be a movement along the curve. B) Nothing, because labor's productivity has not changed. C) The curve shifts to the right. D) We cannot answer the question without knowing if Dale would want to hire more workers.

According to the Laffer curve, we know with certainty that an increase in the tax rate will

A) cause tax revenue to increase. B) cause tax revenue to decrease. C) have no effect on tax revenue. D) cause tax revenue to increase, decrease, or remain unchanged.