Kyle and Liza Are Married and Under 65 Years of Age.During

question 89

Multiple Choice

Kyle and Liza are married and under 65 years of age.During 2010,they furnish more than half of the support of their 19-year old daughter,May,who lives with them.May earns $15,000 from a part-time job,most of which she sets aside for future college expenses.Kyle and Liza also provide more than half of the support of Kyle's cousin who lives with them.Liza's father,who died on January 3,2010,at age 80,has for many years qualified as their dependent.How many personal and dependency exemptions should Kyle and Liza claim?

• A)Two.
• B)Three.
• C)Four.
• D)Five.
• E)None of the above.

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Definitions:

Surplus

The situation in which the quantity of goods exceeds the quantity demanded at the current price.

Price Ceiling

A legally established maximum price that can be charged for a good or service, usually set below the equilibrium price to make goods more affordable.

Excess Demand

A situation where the quantity demanded of a good exceeds the quantity supplied at a given price, often leading to upward pressure on prices.

Equilibrium Quantity

The quantity of goods or services at which demand equals supply, leading to a stable market condition.