If Both the Supply of and the Demand for a Good

question 6

Multiple Choice

If both the supply of and the demand for a good are highly elastic, a shift of either curve will always result in

• A) a decrease in price.
• B) an increase in price.
• C) a large change in quantity.
• D) no change.

Understand the concept of consumer behavior and decision-making in the context of utility maximization.

Analyze the impact of changes in prices and income on consumer choices and welfare.

Comprehend the theory of indifference curves, budget constraints, and optimization in consumption choices.

Evaluate the effects of government policies on consumer choices and welfare.

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Definitions:

FUTA Payable

A federal tax liability owed by employers to fund the unemployment benefits system.

FICA-OASDI

Represents the Federal Insurance Contributions Act's Old-Age, Survivors, and Disability Insurance, a U.S. payroll tax that funds Social Security.

FICA-Medicare

The portion of the Federal Insurance Contributions Act tax that is allocated to Medicare, funding hospital insurance benefits for individuals who are elderly or disabled.

Payroll Register

A document that records detailed information about the compensation paid to employees, including wages, deductions, and net pay.