"As Domestic Car Prices Have Increased,consumers Have Found Foreign Cars

question 24

Multiple Choice

"As domestic car prices have increased,consumers have found foreign cars to be a better bargain.Consequently,domestic car sales have fallen and foreign car sales have risen." Based on this information alone,there has been a

• A)shift in the demand curves for both domestic and foreign cars.
• B)shift in the supply curves for both domestic and foreign cars.
• C)movement along the demand curves for both domestic and foreign cars.
• D)movement along the demand curve for domestic cars and a shift of the demand curve for foreign cars.
• E)shift of the demand curve for domestic cars and a movement along the demand curve for foreign cars.

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Definitions:

Taxpayer

An individual or entity that is required by law to pay taxes to a federal, state, or local government.

State Tax

A tax imposed by a state on earned income, business profits, property, sales, etc., that varies from state to state.

Itemized Deduction

Expenses listed separately that can be deducted from adjusted gross income to reduce taxable income, including medical expenses, taxes paid, interest, charitable contributions, and certain job-related expenses.

Constructive Receipt

This refers to the point at which an individual has access to, or control over, income, thus making it taxable, even if the income has not been physically received.