Table 93 Julie Plans to Start a Pet-Sitting Service

question 254

Multiple Choice

Table 9.3 Julie plans to start a pet-sitting service.She surveyed her neighbourhood to determine the demand for this service.Assume that each person surveyed demands only one hour of pet sitting services per period.Table 9.3 above shows a portion of her survey results.
-Refer to Table 9.3.If Julie charges $10 per hour, how many hours of pet sitting services will be purchased and by whom?

• A)2 hours (1 hour by Cara and 1 hour by Dawn)
• B)1 hour by Cara only
• C)1 hour by Dawn only
• D)3 hours (1 hour each by Arun, Bernice and Cara)

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Definitions:

Tax Cuts

Reductions in the amount of taxes imposed by a government, often aimed at stimulating economic growth by increasing disposable income or encouraging investment.

Labor Supplied

The overall time period that workers consent to and can offer to work, in exchange for an established rate of pay.

Laffer Curve

A theoretical representation of the relationship between government revenue raised by taxation and all possible rates of taxation, suggesting that higher tax rates beyond a certain point actually decrease total revenue.

Elasticities

Measures of how much the quantity demanded or supplied of a good responds to changes in price, income, or other factors.