The Price Elasticity of Demand Is a Measure of

question 248

Multiple Choice

The price elasticity of demand is a measure of

• A) the equilibrium price of a product.
• B) buyers' responsiveness to changes in the price of a product.
• C) the amount of a product purchased when income increases.
• D) whether a product is a substitute or a complement.
• E) how much a change in demand affects the equilibrium price.

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Definitions:

FUTA

The Federal Unemployment Tax Act institutes a payroll levy on companies to support state employment organizations.

SUTA

State Unemployment Tax Act; a payroll tax that employers pay to fund their state's unemployment insurance.

FICA-OASDI

The Federal Insurance Contributions Act, also known as Old Age, Survivors, and Disability Insurance, is a payroll tax which finances Social Security and Medicare programs within the United States.

SUTA

State Unemployment Tax Act, which requires employers to contribute to the state unemployment insurance program.