A Surplus Occurs When the Price Is

question 173

Multiple Choice

A surplus occurs when the price is

• A) less than the equilibrium price.
• B) equal to the equilibrium price.
• C) greater than the equilibrium price.
• D) None of the above because the existence of a surplus is independent of the price of the good.

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Definitions:

Schedule E

A form used by the IRS for reporting income and loss from rental property, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue.

Rental Income

Income received from allowing others the use of a property in exchange for payment, typically reported on tax returns and subject to specific rules and taxes.

Repair Expense

Costs incurred to fix or maintain property or equipment, generally deductible in the year they are incurred for tax purposes.