For a Good That Is a Necessity,demand

question 134

Multiple Choice

For a good that is a necessity,demand

• A)tends to be inelastic.
• B)tends to be elastic.
• C)has unit elasticity.
• D)cannot be represented by a demand curve in the usual way.

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Definitions:

Duopoly Outcome

The result or consequence of a market structure where two companies dominate the supply of a product or service.

Price-fixing Agreement

An illegal arrangement in which businesses agree on prices of their goods or services, undermining competition.

Market Structures

The organizational and other characteristics of a market that influence the nature of competition and pricing.

Oligopolistic Industry

A market structure characterized by a small number of firms that dominate the market, leading to competitive yet interdependent pricing and marketing strategies.