If the Demand Curve for a Good Increases and Decreases

question 16

Multiple Choice

If the demand curve for a good increases and decreases cyclically along a relatively Inelastic (or steep) supply curve, then, in this market, the size of price fluctuations will be __________ than the size of quantity fluctuations.

• A) relatively less
• B) the same
• C) relatively greater
• D) relatively less or the same but not relatively greater

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Definitions:

Business

The systematic endeavors and operations by people to create and market products and services with the aim of making a profit.

Exculpatory Clauses

Provisions in a contract that relieve one party of liability for harm or loss caused during the execution of the contract, often shifting the risk to the other party.

Principal

The original amount of money loaned or invested, excluding any interest or profits.

Tort Liability

Legal responsibility arising from civil wrongs or injuries caused by one's actions or inactions to another person, excluding breaches of contract.