You Are Just About to Finish College and Are About

question 200

Multiple Choice

You are just about to finish college and are about to start a high paying job.Because of this new job,what is the most likely outcome in the market for cars?

• A) Your demand for cars will decrease.
• B) The market supply of cars will increase.
• C) Your demand for cars will increase.
• D) The market supply of cars will decrease.
• E) The demand and the supply for cars will decrease.

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Definitions:

Elastic Supply

A situation where the supply of a good changes significantly when its price changes.

Tax Burden

The measure of the impact of taxation on an individual's or entity's income, assets, or purchasing power.

Elastic

Describes a situation in economics where the supply or demand for a good or service is sensitive to changes in price. In other words, a small change in price results in a larger change in quantity demanded or supplied.

Tax Burden

The measure of the total amount of taxes that an individual or business must pay, relative to their income or profit.