When a Tax Is Placed on the Buyers of Snowboards,what

question 91

Multiple Choice

When a tax is placed on the buyers of snowboards,what is the result

• A)The size of the snowboards market is reduced.
• B)The price of snowboards decreases.
• C)The supply of snowboards decreases.
• D)The price of snowboards increases, and the equilibrium quantity of snowboards is unchanged.

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Definitions:

Fair Value Increment

The increase in the fair value of an asset over its previous book value, often recognized in the course of business combinations or revaluations.

Capital Assets

Long-term assets acquired or owned by a company that are used in its operations to generate income.

Consolidated Financial Statements

Financial statements that show the financial position, results of operations, and cash flows of a parent company and its subsidiaries as a single economic entity.

Direct Method

a way of preparing the cash flow statement where actual cash flows from operating activities are reported rather than adjusting net income on an accrual basis.