Drake operates a trucking business, and one of his trucks was damaged in a traffic accident. the truck was purchased for $52,000 and the adjusted basis was $22,000 at the time of the accident. the truck was repaired at a cost of $5,000 and insurance reimbursed drake $2,000 of this cost. what is the amount of drake’s casualty loss deduction?

The amount of Drake’s casualty loss deduction is $3,000

Explanation:

The deduction amount would be less of the adjusted basis or net cost of the truck

where,  

Adjusted basis = $22,000

And, the net cost would be equal to

= Repair cost - reimbursement cost of insurance

= $5,000 - $2,000

= $3,000

So, by comparing both the amounts, the $3000 would show a lesser amount than adjusted basis ($22,000)

And, the purchase cost of the truck would be ignored. Thus, it is not considered in the computation part.  

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.