The Demand Curve for Microwave Popcorn Is Linear

question 435

Multiple Choice

The demand curve for microwave popcorn is linear. Which of the following definitely makes the demand for microwave popcorn more inelastic?

• A) a decrease in the price of microwave popcorn
• B) an increase in the price of microwave popcorn
• C) an increase in income
• D) a decrease in income

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Definitions:

Wheeler-Lea Act

The Wheeler-Lea Act is a United States federal law that amended the Federal Trade Commission Act, prohibiting unfair or deceptive acts or practices in commerce, with a particular focus on false advertising.

Federal Trade Commission

A U.S. government agency responsible for protecting consumers and promoting competition by preventing anticompetitive, deceptive, and unfair business practices.

Purchasing Power

The ability of an individual or group to buy goods or services, often relative to the amount of money they have.

Deflation

A decrease in the general price level of goods and services, often indicating reduced consumer demand or increased supply.