The Price of X Was $10 in Year 1 and $14

question 168

Multiple Choice

The price of X was $10 in year 1 and $14 in year 2.Which of the following could be the correct reason for the rise in price?

• A) The demand for X was higher in year 2 than in year 1,ceteris paribus.
• B) The supply of X was lower in year 2 than in year 1,ceteris paribus.
• C) The demand was higher,and the supply was lower,in year 2 than in year 1.
• D) a and b
• E) a,b,and c

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Definitions:

FUTA

The Federal Unemployment Tax Act (FUTA) is a United States federal law that imposes a payroll tax on employers to fund state workforce agencies.

Unemployment Taxes

Taxes paid by employers to fund the unemployment benefits, based on the number of employees and the history of layoffs.

Employer's Payment History

A record of all the payments made by an employer, including wages, taxes, and contributions.

Ceiling

The maximum limit on the price, wage, or other variable typically set by a government or regulatory body.