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If the Demand for KFC Chicken Is Price Elastic, a Fall

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True/False

If the demand for KFC chicken is price elastic, a fall in the price of KFC chicken will raise the total revenue.


Definitions:

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in the market, often resulting in higher prices and restricted supply.

Duopoly

A market structure in which two companies own all or nearly all of the market for a given product or service.

Price Effect

The impact on demand when the price of a product or service changes, influencing consumers' buying decisions.

Marginal Cost

The additional expense required to produce an extra item or unit of output, emphasizing its role in economic decision-making.

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