Question: If tastes increase and taxes decrease, please illustrate the direction or movement of

the supply and demand curves and state whether the prices will increase, decrease,

or remain at the same level and state whether quantity will increase, decrease, or

remain at the same level.

Answer Given: With Increased tastes for goods and service, the will be a relative increase in the demand

for the same. Consequently, a reduction in the price of the same commodities will cause a

reduction in their prices. This will boost the purchasing power of the consumers, thus

increase the demand significantly. The supply curve and the demand curve will both shift

to the right due to favourable factors of production and reduced prices.

This answer seems confusing, it's seems to reference price being a cause of reducing price. Also is it the taxes decrease that's increasing the buying power of the consumer? Also if both curves move to the right wouldn't price remain the same and quantity go up unless the the supply curve is moving to the right but the demand curve is moving even further to the right?