Figure 8-9 the Vertical Distance Between Points a and C Represents a Represents

question 169

Multiple Choice

Figure 8-9
The vertical distance between points A and C represents a tax in the market.
-Refer to Figure 8-9.The imposition of the tax causes the price paid by buyers to

• A)increase from $600 to $800.
• B)increase from $300 to $800.
• C)decrease from $600 to $300.
• D)remain unchanged at $600.

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Definitions:

Long-Term Investment

assets purchased by a company that are intended to be held for more than one year, such as stocks, bonds, or real estate.

Realized Gain

The profit earned from selling an asset for more than its purchase price, recognizable when the transaction is completed.

Trading Investments

Assets acquired primarily for selling in the near term to generate profit from short-term price fluctuations.

Interest Income

Interest income is the revenue earned from depositing funds in interest-bearing accounts, securities, or investments, where the yield comes in the form of interest payments.