Exhibit 4-3 -Refer to Exhibit 4-3.If P₁ Is a Price Ceiling,the Highest

question 53

Multiple Choice

Exhibit 4-3
-Refer to Exhibit 4-3.If P₁ is a price ceiling,the highest price for good Y,which is tied (a tie-in sale) to good X,is

• A)P₁.
• B)P₂.
• C)P₃.
• D)P₃ - P₁.
• E)P₁ + P₂.

---

Definitions:

Deductibility

The quality of an expense being allowed by tax laws to be subtracted from gross income to reduce taxable income.

Moving Expenses

Costs associated with moving for work, which may be deductible under certain conditions for tax purposes.

Pre-Move House Hunting

Expenses incurred while searching for a new residence before relocating for a job, which may be deductible or reimbursable under certain circumstances.

Deductible Moving Expense

Expenses related to moving for work that exceed a certain distance and time requirement, which can be deducted for tax purposes, but currently limited to members of the Armed Forces.