-In the Above Figure, the Demand Curve for Good a Shifts

question 46

Multiple Choice

-In the above figure, the demand curve for Good A shifts from D1 to D2 in Graph A when the price of Good B changes from P1 to P2 in Graph B. We can conclude that

• A) Good A and Good B are substitutes.
• B) Good A and Good B are complements.
• C) Good A is a normal good but Good B is an inferior good.
• D) Good A and Good B are unrelated.

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Definitions:

Self-Employment Tax

Self-Employment Tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves.

Self-Employment Income

Earnings derived from one's own business, professional practice, or freelance work, subject to tax and self-employment contributions.

Adjusted Basis

The value of an asset for tax purposes, calculated by modifying its original cost by factors such as depreciation or improvements.

Accumulated Depreciation

The total depreciation expense charged against an asset over its useful life.