Good X Has a High Price Elasticity of Demand; It

question 111

Multiple Choice

Good X has a high price elasticity of demand; it is most likely that

• A)consumers have high incomes.
• B)good X has a lot of substitutes.
• C)good X has a lot of complements.
• D)good X is in short supply.
• E)good X is not related to any other goods.

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Definitions:

Social Security Act

A law enacted in 1935 in the United States to provide for the general welfare by establishing a system of federal old-age benefits, and by enabling the states to make more adequate provision for aged persons, blind persons, dependent and crippled children, maternal and child welfare, public health, and the administration of their unemployment compensation laws.

Industrial Accidents

Unplanned events that occur in the industrial sector causing injury to employees or damage to properties.

Social Security Program

A government program that provides financial benefits to retirees, disabled workers, and survivors of deceased workers.

Payroll Taxes

Taxes imposed on employers and employees, usually calculated as a percentage of the salaries that employers pay their staff.