In the Case of a Surplus

question 139

Multiple Choice

In the case of a surplus,

• A)there is no need for adjustment because equilibrium is rarely perfect.
• B)the quantity supplied exceeds the quantity demanded at the current price level.
• C)producer incomes will fall and production will rise in order to make up for the shortfall.
• D)market price will rise.
• E)the quantity demanded exceeds the quantity supplied at the current price level.

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Definitions:

Depreciation Tax Shield

The reduction in taxable income that results from the allowance for depreciation expenses, lowering tax liability.

CCA Rate

Capital Cost Allowance rate, used for tax purposes to determine the yearly depreciation of tangible property.

Maintenance

The process of preserving or keeping equipment, systems, or facilities in effective operating condition through routine checks and repairs.

Range Cylinder

Refers to a component in hydraulic or pneumatic systems that determines the range of movement or force exerted by the system, often by specifying the maximum extendable length of the cylinder.