At an Equilibrium Price for Gasoline

question 193

Multiple Choice

At an equilibrium price for gasoline,

• A)everyone with the desire and the income to buy gasoline at that price can do so.
• B)surpluses are inevitable.
• C)inherent market forces will eventually change the quantities demanded and supplied.
• D)suppliers must be using the most efficient oil-drilling equipment available.

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Definitions:

Adjusted Basis

The original cost of a property adjusted for factors such as depreciation or improvements, used in calculating capital gains or losses for tax purposes.

Wash Sale

A tax term referring to the sale of a security at a loss and the repurchase of the same, or substantially the same, security shortly before or after, which disallows the claim of the loss for tax purposes.

Substantially Identical

Refers to property or securities that are nearly the same, often used in tax rules concerning wash sales.

Fair Market Value

The price at which an asset would sell on the open market between a willing buyer and a willing seller.