Last Year,Keith Purchased 20 Pounds of Beef When His Income

question 121

Multiple Choice

Last year,Keith purchased 20 pounds of beef when his income was $30,000.This year his income is $40,000 and he purchased 40 pounds of beef.Which of the following statements is true?

• A)Keith's demand for beef is price inelastic.
• B)Beef and income are substitutes.
• C)Keith's demand for beef is price elastic.
• D)Beef is a normal good.
• E)None of the other answers is true.

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Definitions:

Medicare

Medicare is a federal health insurance program in the United States primarily for people who are 65 years or older, and for some younger people with disabilities.

Social Security

A U.S. government program that provides retirement, disability, and survivors' benefits funded through payroll taxes.

Form W-2

Form W-2 is an IRS tax form used in the United States to report wages paid to employees and the taxes withheld from them.

Gross Wages

The total amount of an employee's earnings before any deductions are made for taxes, benefits, and other payroll withholdings.