Demand Is Inelastic If the Price Elasticity of Demand Is

question 171

Multiple Choice

Demand is inelastic if the price elasticity of demand is

• A)less than 1.
• B)equal to 1.
• C)greater than 1.
• D)equal to 0.

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Definitions:

Income

The amount of money received by an individual or business in exchange for labor, services, or investments, typically measured over a specific period of time.

Taxes

Compulsory financial charges imposed by a government on individuals, corporations, or other entities, primarily used to fund public expenditures.

Tax Brackets

Ranges of income taxed at different rates, designed to ensure that taxpayers with higher incomes pay a higher percentage of their income in taxes.

Canada Revenue Agency

The federal agency responsible for administering tax laws for the Canadian government and for most provinces and territories.