Which of the Following Is Most Likely to Occur When

question 16

Multiple Choice

Which of the following is most likely to occur when price is inelastic?

• A)A price decrease increases unit margin.
• B)A price decrease increases gross profit.
• C)A price increase reduces gross profit.
• D)A price decrease hurts sales.
• E)A price decrease reduces unit volume.

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Definitions:

Fraudulent Misrepresentation

A false statement made knowingly or recklessly to induce another party to enter into a contract, resulting in harm or loss.

Reliance

The act of depending on or trusting something or someone.

Legal Assent

The express or implied agreement to the terms of a contract, demonstrating a mutual understanding and intention to be bound by those terms.

Courts

Institutions established by governmental entities to settle disputes through a legal process by applying laws and issuing decisions, rulings, or judgments.