How Can the Market Demand for a Product Be Inelastic

question 107

Multiple Choice

How can the market demand for a product be inelastic but the demand for a particular firm is elastic?

• A) There is no advertising.
• B) There is a sufficiently large number of sellers.
• C) There is only one or two sellers.
• D) Buyers do not have complete information.

---

Definitions:

Collective Bargaining

The process by which workers, through their unions, negotiate contracts with their employers to determine their terms of employment.

Union Shop

A workplace where employees are not required to join the union in order to be hired but must join shortly thereafter and remain members as a condition of employment.

Secondary Picketing

Picketing at other than the employer’s place of business.

Severance Pay

Compensation provided to an employee upon termination of employment, often depending on the length of service.