Which of the Following Is Most Relevant to the Concept

question 38

Multiple Choice

Which of the following is most relevant to the concept of threshold?

• A) A department store has more than 50 employees.
• B) A survey reveals that people are prepared to drive a 30 minutes to get to a department store.
• C) A department store typically needs roughly 25,000 people living within a 15-minute radius.
• D) A department store only carries female products.
• E) A drugstore has a loyalty card that is extremely generous.

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Definitions:

Excise Tax

A tax levied on specific goods, services, or transactions, often imposed on items such as alcohol, tobacco, and gasoline.

Price-Elastic Demand

The characteristic of demand for a good indicating that a change in price results in a relatively larger change in the quantity demanded.

Excise Tax

A tax on the sale or use of specific products or transactions, typically integrated directly into the cost of the good.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, often influenced by the availability of substitutes.