You Own a Small Store

question 239

Multiple Choice

You own a small store.Your cashier thinks you should raise prices to increase your total revenue and your customer thinks you should lower prices to increase your total revenue.The cashier thinks the price elasticity of demand is ________ and the customer believes the price elasticity of demand is ________.

• A) inelastic; elastic
• B) elastic; inelastic
• C) elastic; elastic
• D) inelastic; inelastic
• E) unit elastic; elastic

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Definitions:

IRS Tax Levy

A legal seizure by the Internal Revenue Service to capture property or assets to satisfy a tax debt.

Health Insurance Premiums

Payments made to health insurance companies to maintain coverage and ensure medical care is covered, often deductible on taxes.

Coverdell Education

A savings account designed to help families pay for educational expenses, from elementary through post-secondary.

CESA

Coverdell Education Savings Account; a tax-advantaged investment account in the U.S. designed to encourage savings for future education expenses.