If Demand Is Highly Elastic and Supply Shifts to the Left

question 138

Multiple Choice

If demand is highly elastic and supply shifts to the left:

• A) price will rise significantly; quantity hardly changes at all.
• B) price will hardly change at all; quantity will decline significantly.
• C) price will rise significantly and quantity will fall significantly.
• D) price and quantity will hardly change at all.

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Definitions:

Federal Statute

A law enacted by the national government that applies across the whole country.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, aimed at standardizing laws across states.

Sale of Goods

A transaction in which ownership of physical products is transferred from a seller to a buyer for payment.

Partial Performance

The situation where a party has completed some, but not all, of their contractual obligations.