For Which of the Following Pairs of Products Would We

question 87

Multiple Choice

For which of the following pairs of products would we expect the cross elasticity of demand to be negative?

• A)printers and toner cartridges
• B)iPhones and BlackBerry smartphones
• C)butter and margarine
• D)LCD TVs and plasma TVs
• E)acetaminophen and ibuprofen

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Definitions:

Marginal Tax Rate

The rate at which an additional dollar of income is taxed.

Vertical Equity

A principle in taxation that says taxpayers with a higher ability to pay should contribute more in taxes.

Marginal Tax Rate

The rate at which an additional dollar of income is taxed, representing the percentage of tax applied to your last dollar of income.

Tax Burden

The total amount of tax paid by an individual, a household, or an organization relative to their income or profits.