-The Figure Illustrates the Market for Chairs

question 426

Multiple Choice

-The figure illustrates the market for chairs. If the supply of chairs increases, the price of a chair ________ $40 and the quantity ________.

• A) will rise above; demanded will decrease
• B) will rise above; supplied will increase
• C) will fall below; demanded will increase
• D) will fall below; demanded will decrease

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Definitions:

Means-Tested Programs

Government programs and assistance available only to individuals or families whose income and assets fall below specified thresholds.

Consumption Tax

A tax on the purchase of goods and services, levied at the point of consumption.

High Income

Refers to earnings that significantly exceed the average or median income level within a specific region, industry, or demographic segment.

Double-Taxation

The taxation of the same income or financial transaction at two different levels, such as corporate profits and then again when distributed as dividends to shareholders.