Answer:
It will lose revenue
Explanation:
An elastic demand (which are found in goods or services that have substitutes) moves proportionally to price changes.
It means that, if the price of the good rise, then the demand will diminish. The opposite works the same, if the price reduces, then the demand will grow.
On the other hand, elasticity refers to the impact of the prices on the demand of the goods and there are key factors that influence this relation:
- Necessity of the good (or product)
- The existence of substitutes goods or alternatives to those goods
- Time
Answer:
Th answer is: Marginal tax rate for Family A is 20%, average tax rate is 12%. There is no Family B in the question.
Explanation:
Family A's tax rate are as follows:
Income Tax rate
up to $10,000 0%
$10,000 to $30,000 10%
$30,000 to $50,000 20%
$50,000 to $80,000 30%
over $80,000 40%
Since Family A's income is $50,000, their marginal tax rate is 20%, and its average tax rate is = [($20,000 x 10%) + ($20,000 x 20%) / $50,000] = ($2,000 + $4,000) / $50,000 = $6,000 / $50,000 = 12%
Securitization has allowed banks to concentrate on the safety of the money they hold. They can also give more protection for the banking transactions
Answer:
A) The GDP deflator is better than the CPI at reflecting the goods and services bought by consumers.
Explanation:
The GDP deflator measures the change in prices of all finished goods and services produced within an economy in a given year.
The CPI, on the other hand, measures the change in the price of a selected basket of goods and services, that corresponds with those that are most often bought by citizens, but is limited anyways in scope.
Therefore, we can safely conclude that the GDP deflator is a more comprehensive measure, even if it's used less frequently than the CPI.
