You are given a background paragraph that describes one or more causal or qualitative relationships such as a relationship in economics or a scientific law and a story that makes use of the concepts or the relationship described in the provided paragraph. You are also given a question about the story that requires an understanding of the relationship described in the background paragraph and the story. You need to come up with an answer to the given question; the answer will be a span from either the question or the story. In order to correctly answer the given question, you need to understand the relationship mentioned in the background paragraph and should be able to use it to understand that in the story. Your answer can not consist of any word that is not mentioned in any of these: the background paragraph, the story, or the question. You can directly copy and paste a span from the story or the question while answering the given question.
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Question: Background Paragraph: The trade-off theory of capital structure is the idea that a company chooses how much debt finance and how much equity finance to use by balancing the costs and benefits. The classical version of the hypothesis goes back to Kraus and Litzenberger[1] who considered a balance between the dead-weight costs of bankruptcy and the tax saving benefits of debt. Often agency costs are also included in the balance. This theory is often set up as a competitor theory to the pecking order theory of capital structure. A review of the literature is provided by Frank and Goyal.[2]

An important purpose of the theory is to explain the fact that corporations usually are financed partly with debt and partly with equity. It states that there is an advantage to financing with debt, the tax benefits of debt and there is a cost of financing with debt, the costs of financial distress including bankruptcy costs of debt and non-bankruptcy costs (e.g. staff leaving, suppliers demanding disadvantageous payment terms, bondholder/stockholder infighting, etc.). The marginal benefit of further increases in debt declines as debt increases, while the marginal cost increases, so that a firm that is optimizing its overall value will focus on this trade-off when choosing how much debt and equity to use for financing. 
Story: Company X stopped taking on more debt, and decided to file for bankruptcy, while company Y, kept benefiting from the tax benefits of debt, having a lower debt level. 
Question: Which company discharged more debt, company X or company Y?

Answer: company X.


Question: Background Paragraph: Artworks are sold at affordable prices [6] ranging from £5 to £1500. For many of the works, the price goes up as the edition sells out. The edition runs range from 30 to 10,000 editions. Each work comes with a digital certificate that is “signed, numbered and authenticated by the artist” [7][8] Once an edition is sold out, collectors can resell their works in the online marketplace. 
Story: The prices of John's paintings started to rise immediately after the edition sold out. they used to cost $10 but now they sell for at least $200. john had 45 paintings in this edition. The prices of Mike's paintings are at $8 a piece, because his edition hasn't sold out yet. Mike's edition run was 250 editions. 
Question: Which paintings sell for more money today?

Answer: John's.


Question: Background Paragraph: Any unused energy in food, whether it comes from carbohydrates, proteins, or lipids, is stored in the body as fat. An extra 3,500 Calories of energy results in the storage of almost half a kilogram (1 pound) of stored body fat. People who consistently consume more food energy then they need may become obese. Obesity occurs when the body mass index is 30.0 kg/m 2 or greater. Body mass index (BMI) is an estimate of the fat content of the body. It is calculated by dividing a person’s weight (in kilograms) by the square of the person’s height (in meters). Obesity increases the risk of health problems such as type 2 diabetes and hypertension. 
Story: Two neighboring villages were living mostly off the land. Boar village was full of fat people, because they would overeat lots of animal products. Leap village was inhabited by vegetarians and vegans.Their food consumption was moderate. 
Question: Which village had fewer people with increased risk of hypertension?

Answer:
Leap.