Figure 21-6 -Refer to Figure 21-6.Suppose the Price of a Book Is

question 271

Multiple Choice

Figure 21-6
-Refer to Figure 21-6.Suppose the price of a book is $15,the price of a DVD is $10,the value of A is 5,and the value of B is 7.5.How much income does the consumer have?

• A) $150
• B) $100
• C) $75
• D) $37.50

---

Definitions:

Inelastic Supply

Refers to a market scenario where the quantity supplied does not change significantly when the price of the product changes.

Marginal Tax Rate

The rate at which the last dollar of a person's income is taxed, reflecting the percentage of additional income that will be taken as tax.

Tax Liability

The total amount of tax that an individual or entity is legally obliged to pay to a taxing authority based on their income, assets, or activities.