Use an Equation to Solve the Problem

question 35

Multiple Choice

Use an equation to solve the problem. Sales tax on a $11 compact disc is $0.55. At what rate is sales tax computed?

• A) 9%
• B) 5%
• C) 4%
• D) 8%
• E) 6%

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Definitions:

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar but not identical, allowing for competition on factors other than price.

McDonald's

A global fast-food restaurant chain known for its burgers, fries, and breakfast menus.

Fast-food Outlets

Quick service restaurants that serve food rapidly and are typically part of a large chain or franchise.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, leading to competition based on factors other than price.