If the Price Elasticity of Demand for Aluminum Foil Is

question 94

Multiple Choice

If the price elasticity of demand for aluminum foil is 1.45,then a 2.4% decrease in the price of aluminum foil will increase the quantity demanded of aluminum foil by

• A)1.66%,and aluminum foil sellers' total revenue will increase as a result.
• B)1.66%,and aluminum foil sellers' total revenue will decrease as a result.
• C)3.48%,and aluminum foil sellers' total revenue will increase as a result.
• D)3.48%,and aluminum foil sellers' total revenue will decrease as a result.

---

Definitions:

Nominal Damages

Small monetary compensation awarded by a court where a legal wrong occurred, but no substantial harm was suffered.

Specific Performance

A legal remedy where the court orders a party to perform their obligations under a contract, rather than paying damages.

Liquidated Damages

A predetermined amount of money that must be paid as damages for failure to perform under a contract.

Reliance Damages

Compensation awarded for losses suffered as a result of relying on a promise or agreement, even if a contract was never formalized.