If an Increase in the Price of a Product from $1

question 74

Multiple Choice

If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units, then demand is:

• A) elastic.
• B) inelastic.
• C) unitary elastic.
• D) horizontal.

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Definitions:

Retirement Saving

Financial savings accumulated over an individual’s working life to provide income in retirement.

Balanced-Budget Policies

Financial or fiscal strategies employed by governments to ensure spending does not exceed income.

Government Debt

Government debt is the total amount of money owed by the government to creditors, often as a result of borrowing to cover budget deficits.

Social Security

A government program that provides financial assistance to people with an inadequate or no income, primarily the elderly, disabled, and families with dependent children.