If a Surplus Exists in a Market, Then We Know

question 229

Multiple Choice

If a surplus exists in a market, then we know that the actual price is

• A)above the equilibrium price, and quantity supplied is greater than quantity demanded.
• B)above the equilibrium price, and quantity demanded is greater than quantity supplied.
• C)below the equilibrium price, and quantity demanded is greater than quantity supplied.
• D)below the equilibrium price, and quantity supplied is greater than quantity demanded.

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Definitions:

Deductibility

The ability of a taxpayer to subtract certain expenses or contributions from their gross income, reducing the amount of taxable income.

Casualty Deduction

A tax deduction for losses incurred from the sudden, unexpected, or unusual destruction of property.

Personal Casualty Losses

Financial losses resulting from the damage, destruction, or loss of personal property from events like natural disasters, theft, or accidents, which may be deductible under certain conditions.

Termite Damage

Damage caused to structures (like homes) by termites, often leading to costly repairs and impacting property value.