Suppose That a Decrease in the Price of X Results

question 146

Multiple Choice

Suppose that a decrease in the price of X results in more of good Y sold.This would mean that X and Y are:

• A)complementary goods
• B)substitute goods
• C)unrelated goods
• D)normal goods

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Definitions:

Net Capital Gain

The profit from the sale of an asset or investment, subtracted by any losses from sales in the same tax year.

AMT

Short for Alternative Minimum Tax, a parallel tax system designed to ensure that individuals and corporations pay at least a minimum amount of tax.

AMT Income

Income calculated for the Alternative Minimum Tax, which includes certain adjustments and preferences to regular taxable income.

Alternative Minimum Tax

A parallel tax system designed to ensure that high-income individuals, corporations, estates, and trusts pay at least a minimum amount of tax.