​Figure 53

question 87

Multiple Choice

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market.
-The less responsive consumers are to a change in the price of a product, _____.

• A)the more price-elastic is the supply curve
• B)the more income-inelastic is the demand curve
• C)the more price-inelastic is the demand curve
• D)the more income-elastic is the supply curve
• E)the more price-elastic is the demand curve

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Definitions:

Excise Tax

A tax applied on specific goods, such as tobacco and alcohol, usually to discourage their use or raise government revenue.

Excise Tax

A tax charged on specific goods and services, such as alcohol, tobacco, and gasoline, usually to discourage their use or generate revenue.

Equilibrium Price

The price in a competitive market at which the quantity demanded and the quantity supplied are equal, there is neither a shortage nor a surplus, and there is no tendency for price to rise or fall.

Federal Income Tax

Federal income tax is the tax levied by the national government on individuals and organizations' annual earnings.