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Figure 3-6 -Refer to Figure 3-6.The Figure Above Represents the Market for Represents

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Figure 3-6
Figure 3-6    -Refer to Figure 3-6.The figure above represents the market for canvas tote bags.Assume that the market price is $35.Which of the following statements is true? A) There is a surplus that will cause the price to decrease; quantity demanded will then increase and quantity supplied will decrease until the price equals $25. B) There is a surplus that will cause the price to decrease; quantity supplied will then increase and quantity demanded will decrease until the price equals $25. C) There will be a surplus that will cause the price to decrease; demand will then increase and supply will decrease until the price equals $25. D) There is a surplus that will cause the price to increase; quantity demanded will then decrease and quantity supplied will increase until the price equals $25.
-Refer to Figure 3-6.The figure above represents the market for canvas tote bags.Assume that the market price is $35.Which of the following statements is true?

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Definitions:

Medicare Tax

A federal tax deducted from an employee's paycheck to fund the Medicare program.

Unemployment Tax

Taxes paid by employers to fund the unemployment insurance program, providing financial assistance to unemployed workers.

Federal Income Tax

A tax levied by the U.S. government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Social Security Tax

A tax that funds the Social Security program, imposed on both employers and employees based on wages earned.

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