If the Price of a Good Rises by 5 Percent

question 4

Multiple Choice

If the price of a good rises by 5 percent and the quantity demanded falls by 20 percent, then price elasticity of demand is equal to:

• A) 97
• B) 4
• C) 5
• D) 20

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Definitions:

Electronic Funds Transfer

The digital transfer of money from one bank account to another either within the same financial institution or across different institutions.

Allocated Tips

Tips that an employer assigns to an employee in addition to the tips the employee reported, usually in the context of large food and beverage establishments.

Withholding Tables

Charts provided by the IRS that employers use to determine the amount of federal income tax to withhold from employees' wages.

Form 941

A quarterly federal tax form used by employers to report income taxes, social security tax, or Medicare tax withheld from employee's paychecks.