Paul and Hannah,who Are Married and File a Joint Return,are

question 65

Essay

Paul and Hannah,who are married and file a joint return,are in the process of adopting a child who is born in December 2017.The child,a son,comes to live with them a week after his birth on December 12.The adoption is not finalized until February of 2018.What tax issues are present in this situation?

---

Definitions:

Unit Elastic

A situation in which a one percent change in price causes an equal percentage change in quantity demanded or supplied.

Very Inelastic

Describes a situation where the demand or supply for a product is barely affected by changes in the price.

Calculate Elasticity

entails determining the degree to which the quantity demanded or supplied of a good changes in response to a change in its price.

Unit Elastic

A situation in which the percentage change in quantity demanded or supplied is equal to the percentage change in price.