All Else Equal, an Increase in the Number of Firms

question 199

Multiple Choice

All else equal, an increase in the number of firms producing energy drinks will

• A)shift the supply curve for energy drinks to the right.
• B)shift the supply curve for energy drinks to the left.
• C)shift the demand curve for energy drinks to the right.
• D)shift the demand curve for energy drinks to the left.

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Definitions:

Withholding Allowance

A tax term referring to an exemption that reduces how much income tax an employer deducts from an employee's paycheck.

Monthly Salary

Regular payment from an employer to an employee, typically provided once a month, for the services rendered by the employee.

Withholding Allowance

A reduction in the amount of income tax withheld from an individual's paycheck, determined by the number of allowances claimed on tax forms.

Gross Earnings

The total income earned by an individual or a business before any deductions or taxes are subtracted.