In the Following Question You Are Asked to Determine,other Things

question 175

Multiple Choice

In the following question you are asked to determine,other things equal,the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for,or supply (S) of,X; (2) the equilibrium price (P) of X;and (3) the equilibrium quantity (Q) of X. Refer to the given information.An increase in the price of a product that is a close substitute for X will:

• A) decrease D,increase P,and decrease Q.
• B) increase D,increase P,and decrease Q.
• C) increase D,increase P,and increase Q.
• D) increase D,decrease P,and increase Q.

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Definitions:

Like-Kind Exchange

A tax deferment strategy where an asset is exchanged for another similar asset, deferring capital gains taxes.

Identified

Specified or determined, often used in contexts where certain items, transactions, or options are selected for specific treatment or action.

Involuntary Conversion

This involves compensation received for the destruction, theft, confiscation, or condemnation of property or the disposition of property under threat of these actions.

Replacement Period

The timeframe during which property must be replaced to defer recognition of gains for tax purposes under certain conditions.