When Economists Are Sketching Examples of a Demand or Supply

question 44

Multiple Choice

When economists are sketching examples of a demand or supply curve that is close to horizontal, they refer to that demand or supply curve as _______.

• A) elastic
• B) inelastic
• C) having zero elasticity
• D) price inelasticity

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Definitions:

Deductibility

The extent to which an expense can be subtracted from gross income to reduce taxable income and lower the tax liability.

Written Acknowledgment

A written statement confirming the receipt of something, often used in tax documentation for charitable donations.

Charitable Organization

A nonprofit entity that operates to perform charitable acts, provide education, religious, or public service activities, eligible for tax-exempt status under the IRS.

Charitable Deduction

A tax deduction that taxpayers can claim for donations made to qualifying charitable organizations.