If a Large Percentage Increase in the Price of a Good

question 141

Multiple Choice

If a large percentage increase in the price of a good results in a small percentage reduction in the quantity demanded of the good, demand is said to be

• A) of unitary elasticity.
• B) relatively inelastic.
• C) relatively elastic.
• D) perfectly elastic.

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Definitions:

Commercial Impracticability

A doctrine that allows parties to a contract to be excused from performing their obligations when unforeseen events make performance excessively difficult or costly.

Discharge

The completion, termination, or fulfillment of a legal duty, obligation, or debt.

Performance

The execution, accomplishment, or fulfillment of duties, contracts, or other obligations according to their terms.

Subjective Satisfaction

Involves a condition within certain contracts where the fulfillment of obligations is based on one party's personal or subjective approval.