Assume Both the Demand for Beef and the Supply of Beef

question 18

Multiple Choice

Assume both the demand for beef and the supply of beef decrease. Which of the following outcomes is certain to occur?

• A)The equilibrium price of beef will rise.
• B)The equilibrium quantity of beef will rise.
• C)The equilibrium price of beef will fall.
• D)The equilibrium quantity of beef will fall.

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Definitions:

Basis

The amount of investment in property for tax purposes, used to calculate gain or loss upon sale or disposition of the property.

Subchapter S

A designation of corporation that meets specific Internal Revenue Service criteria, allowing it to be taxed as a pass-through entity, avoiding double taxation.

Taxable Income

The portion of a person's or a company's income used to determine how much tax is owed to the government.

Book Income

The income reported by a corporation for financial reporting purposes, which may differ from taxable income calculated for tax purposes.