When Demand Is Inelastic

question 248

Multiple Choice

When demand is inelastic

• A) quantity demanded is very responsive to a change in price.
• B) quantity demanded is not very responsive to a change in price.
• C) the proportional change in quantity demanded is equal to the proportional change in price.
• D) producers react quickly to price changes.

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Definitions:

Taxable Income

The amount of income used to determine how much tax an individual or a corporation must pay to the government in a given tax year.

Qualified Pension Plan

A retirement plan that meets the requirements set forth by the IRS, providing tax benefits to both employers and employees.

Tax Benefits

Refers to reductions in tax liability granted to taxpayers by the government, typically for certain activities or investments such as education expenses, retirement savings, or home ownership.

Single Life Annuity Contract

A Single Life Annuity Contract is an annuity that pays out a fixed or variable income stream to an individual for their lifetime, with payments ceasing upon their death.