In the diagram, a shift from AS2 to AS3 might be caused by an increase in business taxes and costly government regulation.
The term "business taxation" refers to the taxes that companies are required to pay as a regular aspect of conducting business. Your firm is in charge of following tax laws whether you are a sole proprietor, partner, a member of a limited liability company, or a corporation. Different tax effects will result from each type of business. Companies will have to pay more taxes in several sectors, such mining and insurance. Despite the fact that businesses pay income tax, property tax, and sales tax, these taxes are not commonly regarded as business taxes because they are not exclusive to businesses.
To know more about taxes refer:
https://brainly.com/question/16423331
#SPJ4
