Use the Figure Below to Answer the Following Questions

question 5

Multiple Choice

Use the figure below to answer the following questions.

Figure 1A.4.5
-Consider the following information on cola sales by number of cases for a typical university residence floor:

Refer to Figure 1A.4.5.Which one of the following represents what happens when the temperature rises from 20°C to 25°C?

• A)The curve shifts from A to B.
• B)The curve shifts from C to B.
• C)The curve shifts from B to C.
• D)The curve shifts along line B.
• E)The curve shifts along line C.

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Definitions:

Marginal Rates

These are the tax rates that apply to each additional dollar of income, used in a progressive tax system where tax rates increase as income rises.

Average Rates

The mean amount of a rate, such as interest or tax rate, calculated by totaling several rates and dividing by the number of rates.

Taxable Income

The portion of income that is subject to tax after all deductions and exemptions have been applied according to tax law.

Tax Liability

The total amount of tax that an individual or entity is legally obligated to pay to tax authorities.