Chocolate Has Just Been Found to Increase Your Expected Life

question 190

Multiple Choice

Chocolate has just been found to increase your expected life span by 5 years if you eat it every day. In the market for chocolate, this information will lead to

• A)an increase in price and a decrease in quantity.
• B)an increase in price and an increase in quantity.
• C)a decrease in price and a decrease in quantity.
• D)a decrease in price and an increase in quantity.

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Definitions:

Permitted Exemption

A deduction allowed under tax law that decreases the amount of income that is subject to taxation, based on specific criteria or eligibility.

Household Income

The combined gross income of all members of a household, used for various financial assessments.

Wage Income

Earnings received from an employer for labor or services performed, typically calculated on an hourly, daily, or piecework basis.

Form W-2

The form used by employers to report an employee's annual wages and the amount of taxes withheld from their paycheck.