Suppose the Price of Coffee Is $3 Each, the Price

question 391

Multiple Choice

Suppose the price of coffee is $3 each, the price of bagels is $2 each and a person's budget is $40. The relative price of coffee is

• A) 1.5 bagels.
• B) 2/3 of a bagel.
• C) 13.33 bagels.
• D) 20 bagels.

---

Definitions:

Tax Shifting

The process by which the economic burden of a tax is passed from one party to another.

Starting Wage

The initial salary offered to an employee by an employer when they begin a new job.

Excise Taxes

Taxes imposed on specific goods, such as tobacco and alcohol, either as a fixed amount per unit or as a percentage of the price.

Regressive

Relating to a tax system that disproportionately impacts those with lower incomes, or to policies that may reverse political or social progress.