The Primary Difference Between a Change in Supply and a Change

question 265

Multiple Choice

The primary difference between a change in supply and a change in the quantity supplied is that:

• A)a change in quantity supplied is a movement along the supply curve, while a change in supply is a shift in the supply curve.
• B)both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions.
• C)a change in supply is related to the supply curve, while a change in quantity supplied is related to shifts in the demand curve that elicit a change in supply.
• D)a change in supply is a movement along the supply curve, while a change in quantity supplied is a shift in the supply curve.

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Definitions:

Equipment

Physical items purchased for use in operations of a business, often subject to depreciation for tax purposes.

Depreciation

The process of allocating the cost of a tangible asset over its useful lifespan, representing wear and tear, deterioration, or obsolescence.

Section 1250

Section 1250 of the U.S. Internal Revenue Code deals with the tax treatment of gains from the sale of depreciable real property, distinguishing between ordinary income and capital gains.

Short-term Loss

A financial loss realized on the sale or exchange of an asset held for one year or less.