Economists speak of price elasticity of demand. Which word below is synonymous with "elasticity"?

Suppose an economy has a balanced federal budget, and a large increase in oil prices plunges the economy into a recession. Tax revenues will ________ and expenditures on transfer payments will ________, resulting in a budget ________

A) increase; increase; surplus B) fall; increase; deficit C) increase; fall; surplus D) fall; fall; deficit

Continuing with the same vacation-insurance company from the preceding question, what vacation-day price(s) would be acceptable to both the family and the insurance company?

a. 2 only b. 3 only c. 2 or 3 d. 4