The Extent to Which the Demand for a Good Changes

question 194

Multiple Choice

The extent to which the demand for a good changes when the price of a substitute or complement changes,other things remaining the same,is measured as the

• A) income elasticity of demand.
• B) cross elasticity of demand.
• C) price elasticity of demand.
• D) price elasticity of supply.
• E) cross income elasticity of demand.

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Definitions:

Federal Government

The national government of a federal state, which holds the central political authority over the collection of states or provinces.

Progressive Taxes

A taxing mechanism where the tax rate increases as the taxable amount grows, resulting in individuals with higher incomes paying a higher percentage of their income in taxes.

Direct Taxes

Taxes levied directly on individuals' or entities' income or wealth, such as income tax and property tax.

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits to retirees, the disabled, and children of deceased workers.