Demand Sensitivity Depends on All of the Following Except

question 113

Multiple Choice

Demand sensitivity depends on all of the following except:

• A) how low the price of the good is.
• B) the sensitivity of a firm's output to changes in its price.
• C) the consumer's income.
• D) the availability and closeness of substitutes.

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Definitions:

FICA

The Federal Insurance Contributions Act; a U.S. law that requires a deduction from paychecks to fund Social Security and Medicare benefits.

OASDI

The Old-Age, Survivors, and Disability Insurance program, part of the U.S. Social Security system, providing benefits to eligible retirees, their families, and the disabled.

Medicare

A federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.

Maximum Earnings Limits

The ceiling on the amount of earnings on which certain taxes or contributions, such as Social Security in the United States, are required.