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A Local Business Wants Your Help in Making a Decision

question 119

Essay

A local business wants your help in making a decision about a large capital investment.The entity has narrowed down the choice to four different locations,based on non-tax factors.How can you help them choose among the four finalists,concentrating on tax issues?


Definitions:

Price Ceiling

A government-imposed limit on how high a price is charged for a product, meant to protect consumers from conditions that could make commodities prohibitively expensive.

Shortage

A market condition where the demand for a product exceeds its supply at a particular price.

Surplus

is a situation in which the quantity of a good or service available exceeds the quantity demanded at the current price.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service, intended to protect consumers.

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