The Difference Between the Demand Price and the Supply Price

question 17

Multiple Choice

The difference between the demand price and the supply price at the quota limit is:

• A)the quota rent.
• B)the rent received by landlords who own rent-controlled apartments.
• C)the opportunity cost of using or buying a good,subject to an import quota.
• D)usually large enough to cause a surplus.

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Definitions:

Net Advantage To Leasing

The financial benefits that accrue to a business when leasing assets as opposed to purchasing them, often considered in terms of cost savings and tax advantages.

Tax Loss Carryforwards

A tax provision that allows individuals or companies to use a net operation loss in one year to offset taxable profits in future years.

Service Equipment

Assets and tools required for the maintenance, repair, and operation of buildings and services, typically not directly tied to production operations.

Amortized

Refers to the process of gradually reducing the cost or value of an asset or debt through periodic payments over a set period.