If the Quantity Demanded Is Less Than the Quantity Supplied,then

question 115

Multiple Choice

If the quantity demanded is less than the quantity supplied,then:

• A)the price will have to increase to establish equilibrium.
• B)there will be a surplus.
• C)the quantity supplied will be less than the quantity demanded.
• D)the demand will shift to the right.

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Definitions:

Tax Authority

A governmental entity responsible for the administration of taxes, including collection, enforcement, and interpretation of tax laws.

Legislative

Pertaining to the branch of government responsible for creating laws.

Private Letter Rulings

Issued by the IRS, these are written decisions provided to taxpayers, offering guidance on the tax treatment of complex transactions.

Tax Treatment

The specific way tax laws apply to different types of income, expenses, and individuals.