There Was a More Than Proportional Decrease in Quantity Demanded

question 68

Multiple Choice

There was a more than proportional decrease in quantity demanded for cupcakes when the local baker raised the price by 20%. The price elasticity of demand for cupcakes is:

• A) inelastic.
• B) elastic.
• C) perfectly inelastic.
• D) perfectly elastic.
• E) unitary elastic.

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Definitions:

Instrument Dishonored

A legal term for when a negotiable instrument (like a check or promissory note) is not honored or paid upon presentation.

Insufficient Funds

A situation where an account does not have enough money to cover transactions, leading to declined payments or penalties.

Delivery

In contract law, the process of transferring the possession of a good or document from one party to another, completing the transaction.

Negotiation

(1) A bargaining process in which disputing parties interact informally to attempt to resolve their dispute. (2) The transfer of the rights to a negotiable instrument from one party to another.