Suppose We Observe a Fall in the Price of Good

question 160

Multiple Choice

Suppose we observe a fall in the price of good A and a decrease in the quantity of good A bought and sold.Which one of the following is a likely explanation?

• A)The law of demand is violated.
• B)The demand for A decreased.
• C)The demand for A increased.
• D)The supply of A increased.
• E)The supply of A decreased.

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Definitions:

Tax Loss Carryovers

A provision that allows a taxpayer to use a net operating loss in one year to offset taxable income in future years.

CCA Class

Capital Cost Allowance (CCA) Class refers to categories used in taxation to determine the depreciation rate that can be claimed for tax purposes on assets, depending on their nature and use in a business.

Break-Even Lease Payment

The payment amount at which the lessee neither profits nor loses money over the term of the lease.

Corporate Tax Rate

The percentage of a corporation's profits that is paid to the government as tax.