Using a Payoff Matrix to Compute the Expected Values of a Decision

question 88

Multiple Choice

Using a payoff matrix to compute the expected values of a decision is appropriate as long as ______ decision(s) is/are to be made at a given point in time.

• A)two
• B)three
• C)multiple
• D)one

---

Definitions:

Elastic

Describes a situation in economics where the quantity demanded or supplied of a good changes significantly in response to a change in price.

Inelastic

Describes a situation where the demand or supply for a good or service is relatively unaffected when the price changes.

Elasticity of Demand

An indicator of the responsiveness of the quantity of a good demanded to its price alterations, showing how sensitive buyers are to changes in its cost.

Tax Burden

The total amount of taxes paid by individuals or businesses relative to their income, often discussed in the context of debates over fairness and economic policy.