The Following Question Are Based on the Following Diagram, Representing

question 62

Multiple Choice

The following question are based on the following diagram, representing the supply and demand curves for an input:

-If the demand curve is D₀,a tax on the income received by the supplier of this input

• A) increases the demand to D₁.
• B) reduces the quantity sold of the input.
• C) raises the quantity sold of the input.
• D) raises the equilibrium price of the input.
• E) has no effect on the equilibrium price and quantity of the input.

---

Definitions:

Book Value

The net value of a company's assets minus its liabilities, as recorded on the balance sheet, often compared to its market value.

CCA Depreciation

CCA Depreciation, or Capital Cost Allowance depreciation, is a method of depreciation used for tax purposes in Canada, allowing businesses to deduct the cost of capital assets over a period of time.

Straight-Line Depreciation

A plan for parceling out the expense of a physical asset throughout its active life in uniform yearly amounts.

Cost-Cutting

The process of reducing operating expenses within a business to improve profitability.