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In Figure 5.8, if the supply curve moves from S2 to S3
Short-term Capital Loss
A loss realized from the sale or exchange of a capital asset held for one year or less.
Long-term Capital Gain
Profit from the sale of an asset held for more than one year, typically taxed at a lower rate than regular income.
Section 1245
A section of the tax code that involves recapturing depreciation on certain types of property as ordinary income upon sale.
Section 1231 Gain
A gain from the sale or exchange of property used in a business, subject to favorable tax treatment under Section 1231 of the U.S. tax code.
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