At Equilibrium

question 4

Multiple Choice

At equilibrium

• A)quantity supplied is equal to quantity demanded.
• B)quantity demanded is greater than quantity supplied.
• C)quantity supplied is greater than quantity demanded.

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Definitions:

Tax Base

The total amount of assets or income that can be taxed by a government, forming the foundation of its revenue.

Progressive Tax

A tax system in which the tax rate increases as the taxable income increases, placing a larger financial burden on wealthier individuals.

Marginal Tax Rate

The rate at which your last dollar of income is taxed, often increasing as income rises.

Average Tax Rate

The ratio of the total amount of taxes paid to the total taxable income, showing the share of income paid in taxes.