Suppose That Accountants Increase the Price for Calculating Income Taxes

question 48

Multiple Choice

Suppose that accountants increase the price for calculating income taxes owed by 20 percent. The short-run demand for their service is less elastic than the long-run demand because in the long run consumers will

• A) spend less on this service.
• B) experience an increase in income.
• C) try to avoid paying their income tax.
• D) find other ways to calculate the income tax they must pay.

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Definitions:

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