Suppose That Is the Price Per Unit (In Dollars)

question 115

Multiple Choice

Suppose that is the price per unit (in dollars) of widgets which will induce producers to supply q thousand widgets to the market, and suppose that is the price per unit at which consumers will buy q thousand units. If and , what do you predict about the future selling price of widgets (currently at $10) ?

• A)It will rise.
• B)It will fall.

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Definitions:

CCA Rate

The Capital Cost Allowance (CCA) rate refers to the percentage rate at which a business can claim depreciation on certain property types for tax purposes in Canada.

Net Advantage to Leasing

This is a calculation used to determine if leasing an asset is a more cost-effective option than purchasing it outright, taking into account all the costs and benefits associated with leasing.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an even manner.

Depreciation Tax Shield

The tax savings achieved by a company from the deductible expenses of depreciation, reducing its taxable income.