The Reward Offered to Households to Refrain from Spending Their

question 118

Multiple Choice

The reward offered to households to refrain from spending their income on current consumption and instead save their income is

• A)rent
• B)credit
• C)utility
• D)interest
• E)forgone utility

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Definitions:

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in the product's price, indicating that consumers are less sensitive to price changes.

Total Revenue

The total receipts from sales of a given quantity of goods or services. It is the total income of a business from its sales activity.

Price

The amount of money required to purchase something or the value that consumers are willing to exchange for a good or service.

Midpoint Method

A technique used in economics to calculate the elasticity of a variable relative to another, minimizing the variability of the measurement regardless of the direction of change.