Write the Word or Phrase That Best Completes Each Statement

question 122

Essay

Write the word or phrase that best completes each statement or answers the question.
-Marianne is planning a shopping trip to buy birthday gifts for her son. She estimates that the total price ofthe items she plans to purchase will be between $350 and $400 inclusive. If sales are taxed at a rate of8.375% in her area, what is the range of the amount of sales tax she should expect to pay on her purchases?If Marianneʹs budget for the shopping trip is $425, will she necessarily be able to buy all the gifts that she haplanned?

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Definitions:

Income Elasticity

A measure of how much the demand for a good or service changes in response to changes in consumer income.

Inferior Good

A type of good whose demand decreases when consumers' income increases, opposite to normal goods.

Demand Elastic

A measure of how sensitive the quantity demanded of a good or service is to a change in its price.

Supply Inelastic

A situation where the quantity supplied of a good is not significantly affected by changes in its price.