You Collect Model Cars

question 65

Multiple Choice

You collect model cars. One particular model increases in value at a rate of 5% per year. Today, the model is worth $29.50. How much additional money can you make if you wait ten years to sell the
Model rather than selling it five years from now?

• A) $9.98
• B) $10.40
• C) $10.86
• D) $11.03
• E) $11.24

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Definitions:

Slightly Regressive

Refers to a tax system or policy that places a relatively higher tax burden on low-income earners compared to high-income earners, but the difference is not pronounced.

Excise Tax

A tax directly levied on specific goods or services, such as tobacco or gasoline, usually to discourage their use or generate revenue.

Highly Inelastic

A situation where the demand or supply for a good or service is insensitive to changes in its price.

Highly Elastic

Describes a situation where the supply or demand for a product or service changes significantly in response to changes in price.