Which of the Following Would Most Likely Cause Both a Decrease

question 291

Multiple Choice

Which of the following would most likely cause both a decrease in the price of plasma screen TVs and a decrease in the number sold?

• A) an increase in the supply of plasma screen TVs
• B) an increase in the demand for plasma screen TVs
• C) a decrease in the supply of plasma screen TVs
• D) a decrease in the demand for plasma screen TVs

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Definitions:

Deferred Tax Asset

This asset arises when a company pays more taxes to the government than it currently owes in its financial statements, to be used for future tax relief.

Pre-Tax Income

Earnings before taxes (EBT), calculated as a company's total revenues minus expenses, excluding income taxes, during a reporting period.

Realized Gain

The profit earned from selling an asset for more than its purchase price, indicating a successful investment.

Trading Securities

Financial assets that are bought and held primarily for selling in the near term to generate income on short-term price differences.