If the Quantity of Textbooks Supplied Is 10,000 Per Year

question 40

Multiple Choice

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year,there is a ________ in the market and the price will ________.

• A)shortage;rise
• B)shortage;fall
• C)surplus;rise
• D)surplus;fall
• E)surplus;either rise or fall depending on whether supply increases to meet the surplus

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Definitions:

Benefits Principle

The concept that those who benefit from government services should pay taxes in proportion to the amount of benefits they receive.

Tax Burden

The measure of taxes that individuals or businesses must pay as a portion of their income or profit, reflecting the financial impact of taxation.

Antipoverty Programs

Government initiatives aimed at reducing poverty and improving living standards for the poor through financial aid, education, and job training.

Benefits Principle

A tax policy principle suggesting that taxes should be levied according to the benefits received by the taxpayer from government services.