What Situation Is Occurring If a 1 Percent Decrease in Price

question 9

Multiple Choice

What situation is occurring if a 1 percent decrease in price results in more than a 1 percent increase in quantity demand?

• A)Demand is cross-price elastic.
• B)Demand is price inelastic.
• C)Demand is price elastic.
• D)Demand maintains the status quo.
• E)Demand results in the income effect.

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Definitions:

Statute Of Limitations

A statute that requires that certain classes of lawsuits must be brought within defined limits of time after the right to begin them accrued or the right to bring the lawsuit is lost.

Unenforceable Contract

An agreement that, due to legal deficiencies or circumstances, cannot be legally compelled by a court to be executed by the parties involved.

Executory Contract

A contract under which both parties to the agreement have obligations that remain to be fulfilled; if one side has completed its obligations, the contract is no longer executory.

Unilateral And Executed

Unilateral refers to an action or agreement made or performed by one party; executed means that the action has been completed or the agreement has been fully performed.