Suppose that accountants increase the price for calculating income taxes owed by 20 percent. The short-run demand for their service is less elastic than the long-run demand because in the long run consumers will ________
A) spend less on this service
B) experience an increase in income
C) try to avoid paying their income tax
D) find other ways to calculate the income tax they must pay
D
You might also like to view...
If a couple plans to stay at a hotel for a week on the beaches of Tulum, Mexico, and it costs 7,000 pesos, _____.
(A) With an exchange rate of 9.5 pesos per dollar, the hotel stay will cost $777.77. (B) With an exchange rate of 11 pesos per dollar, the hotel stay will cost $636.36. (C) With an exchange rate of 9 pesos per dollar, the hotel stay will cost $823.53. (D) With an exchange rate of 12 pesos per dollar, the hotel stay will cost $608.70.
The stock market boom during the 1990s
A) boosted consumption relative to income. B) depressed the percentage of disposable income saved by households. C) may explain the behavior of household savings during that decade. D) All of the above.