Some Producers Are Chatting Over a Beer

question 145

Multiple Choice

Some producers are chatting over a beer. Which quotation refers to an increase in supply?

• A) "Wage increases have forced us to raise our prices."
• B) "Our new, sophisticated equipment will enable us to undercut our competitors."
• C) "Raw material prices have sky-rocketed; we will have to pass the cost on to our customers."
• D) "We anticipate a big increase in demand. Our product price should rise, so we are planning for an increase in output."
• E) "Some competing businesses are leaving the industry and prices are rising."

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Definitions:

Taxable Income

Income of an individual or corporation subject to tax by governmental authorities.

Financial Income

Income generated through investments or other financial instruments, distinct from operational or business income.

Deferred Tax Asset

An accounting term representing taxes that have been overpaid or deferred for future periods, potentially reducing future tax liabilities.

Pretax Accounting Income

The income of a business before any tax is deducted, often used in financial reporting and analysis.