Suppose You Bought a Digital Camera for a Total Purchase

question 2

Multiple Choice

Suppose you bought a digital camera for a total purchase price of $276.99. If state taxes were 6.2%, what was the amount of the sales tax?

• A) $22.19
• B) $16.17
• C) $6.20
• D) $3.12

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Definitions:

Elastic Demand

A market situation where the quantity demanded of a good or service changes significantly as its price changes.

Short Run

A period during which at least one of a firm's inputs is fixed, limiting its ability to adjust production levels.

Long Run

A period of time in economics sufficient for all markets to adjust to changes, including the production capacity of the industry.

Price Paid

The actual amount of money exchanged for acquiring a good or service.