Figure 4-26 -Refer to Figure 4-26.Which of the Following Movements Would Illustrate

question 52

Multiple Choice

Figure 4-26
-Refer to Figure 4-26.Which of the following movements would illustrate the effect in the market for swimming lessons of an increase in the incomes of parents with school-aged children?

• A)Point A to Point B
• B)Point C to Point B
• C)Point C to Point D
• D)Point A to Point D

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Definitions:

CCA Tax Shield

A tax benefit derived from the depreciation expense allowed on tangible property for tax purposes, reducing taxable income.

Class 8 Equipment

Heavy-duty machinery typically used in the transport and logistics industry, such as 18-wheel trucks.

Tax Rate

The chunk of income designated by the government to be taken as tax from corporations or the public.

CCA Rate

Capital Cost Allowance rate, which is the percentage rate at which Canadian businesses can claim depreciation on assets for tax purposes.