When Supply and Demand Are Both Elastic, a Price Floor

question 7

Multiple Choice

When supply and demand are both elastic, a price floor will cause a:

• A) larger surplus than when supply and demand are inelastic.
• B) smaller surplus than when supply and demand are inelastic.
• C) larger shortage than when supply and demand are inelastic.
• D) smaller shortage than when supply and demand are inelastic.

Understand the structure and jurisdictional scope of federal and state courts, including the U.S. Court of Appeals for the Federal Circuit.

Examine the differences between summary judgment and directed verdict within the judicial process.

Analyze specific legal provisions such as those under the Dodd-Frank Wall Street Reform and Consumer Protection Act regarding arbitration.

Know the process and implications of enforcing a judgment within the legal system.

---

Definitions:

FMV

Fair Market Value; an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller.

Schedule M-1

A tax form used by corporations to reconcile income reported on the company's financial statements with the income reported on the tax return.

Book Income

The income or profit reported by a company in its financial statements before adjustments for taxes, as per accounting rules, different from taxable income.

Taxable Income

The amount of an individual’s or corporation's income used to determine how much tax is owed, calculated as gross income minus deductions and exemptions.