Use the Following to Answer Question(s): Shifts in Demand and Supply

question 81

Multiple Choice

Use the following to answer question(s) : Shifts in Demand and Supply

-(Exhibit: Shifts in Demand and Supply) Assume that the market in Panel (a) is in equilibrium at point M.Compared to the initial equilibrium at point N, what changes could explain what happened in this market?

• A) supply decreased
• B) demand decreased
• C) both demand and supply decreased
• D) both demand and supply increased

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Definitions:

Publicly Traded

Refers to companies whose shares are bought and sold by the public on stock exchanges.

Basis

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

Condemnation Proceeds

Financial compensation received when property is taken by a government authority through eminent domain.

Recognized Gain

The amount of profit that is realized from the sale of assets that must be reported for tax purposes.