Use the Following to Answer Questions

question 169

Multiple Choice

Use the following to answer questions:
Figure: Demand and Supply of Gasoline
-(Figure: Demand and Supply of Gasoline) Look at the figure Demand and Supply of Gasoline. When the supply curve shifted from the initial equilibrium, the new intersection of supply and demand has a price of _____ and quantity of 400. This supply shift could have resulted from _____.

• A)$1.50; an increase in consumers' income
• B)$1.50; an improvement in refining technology
• C)$2.00; an increase in the number of buyers
• D)$2.00; an increase in consumers' income

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Definitions:

Contingent Loss

A potential financial loss that may occur depending on the outcome of a future event.

Realizable Loss

A loss recognized when the market value of an asset falls below its carrying amount on the balance sheet.

Capitalized Loss

A loss from an investment or asset that is added to the cost basis of another asset, rather than being immediately expensed.

Long-Term Investments-AFS

Available-for-sale long-term investments are those not classified as held-to-maturity or trading securities, and are reported at fair market value.