-Refer to the Above Figure

question 394

Multiple Choice

-Refer to the above figure. If a price ceiling of $3 was set

• A) the quantity sold would be 80 units.
• B) there would be a surplus of 40 units.
• C) there would be a shortage of 40 units.
• D) there would be a shortage of 20 units.

---

Definitions:

AGI

Refers to Adjusted Gross Income; the calculation that determines how much of your income is taxable after specific deductions are applied.

Estimated Payments

Periodic advance payments of expected tax liability, often required for earners not subject to withholding taxes like self-employed individuals.

Tax Liability

Refers to the total amount of tax that an individual or business is obligated to pay to the government, based on earnings, property ownership, and other taxable income sources.

Social Security Taxes

Taxes collected from employees and employers to fund the Social Security program, providing benefits for retirees, the disabled, and survivors.