The demand for tax services is described as very seasonal in nature. Given this characteristic, describe the effect of each of the following in terms of whether it would increase or decrease the quantity demanded or the demand for tax services. Moreover, when price is expressed as a function of quantity, indicate whether the effect of each of the following is an upward or downward movement along a given demand curve or involves an outward or inward shift in the relevant demand curve for tax services.

Diagram or describe your answer.If you diagram your answer, be sure to label your axis.

A.

An increase in cost of tax services for individuals

B.

An increase in tax requirements by IRS (difficult for individuals to self-file)

C.

The IRS has simplified the tax filing process (easy procedures for individuals to self-file)