If an Increase in the Price of Peanut Butter Causes

question 153

Multiple Choice

If an increase in the price of peanut butter causes a decline in the demand for jelly, then

• A)the goods are substitutes
• B)jelly is an inferior good
• C)the goods are complements
• D)both goods are inelastic
• E)peanut butter is an inferior good

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Definitions:

Taxable Income

The portion of income used to calculate how much the income tax is owed to the government, after exemptions and deductions are factored in.

Publicly-traded Domestic Corporation

A company registered in the U.S. that sells its stocks to the public on at least one stock exchange.

DRD

Dividends-Received Deduction, a tax deduction received by a company for the dividends it gets from its investments in other companies.

AMT

The Alternative Minimum Tax, a parallel tax system in the United States designed to ensure that individuals and corporations pay at least a minimum amount of taxes.