Suppose That Accountants Increase the Price for Calculating Income Taxes

question 48

Multiple Choice

Suppose that accountants increase the price for calculating income taxes owed by 20 percent. The short-run demand for their service is less elastic than the long-run demand because in the long run consumers will

• A) spend less on this service.
• B) experience an increase in income.
• C) try to avoid paying their income tax.
• D) find other ways to calculate the income tax they must pay.

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Definitions:

Social Interactions

The process by which individuals act and react in relation to others, which includes behaviors, communication, and understanding shared between people.

Violate

To break or fail to comply with a rule, law, or agreement.

Anterograde Amnesia

A condition characterized by the inability to form new memories following a traumatic event or damage to the brain, although memories from before the event remain intact.

Criminally Responsible

The legal designation for individuals deemed capable of understanding and answering for their actions in a court of law.