If Quantity Demanded Falls by 25 Percent When Price Rises

question 75

Multiple Choice

If quantity demanded falls by 25 percent when price rises by 50 percent, demand is said to be:

• A) elastic.
• B) inelastic.
• C) proportional.
• D) unit elastic.

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Definitions:

Net Check

Net check is the amount of money an employee receives after all deductions, such as taxes and health insurance, have been subtracted from the gross pay.

Payroll Tax Liability

The obligation of an employer to withhold and pay taxes to the government based on the wages and salaries paid to employees.

Form 941-V

A specific tax form used when making a payment together with Form 941, which is the Employer's Quarterly Federal Tax Return.

Payroll Tax Withholding

The process by which employers deduct taxes from employees' paychecks to cover income taxes, Social Security, and Medicare obligations.