Suppose That a 15 Percent Decrease in Price Leads to an Increase

question 21

Multiple Choice

Suppose that a 15 percent decrease in price leads to an increase in the quantity demanded of 10 percent,

• A)demand is elastic.
• B)demand is inelastic.
• C)elasticity of demand is unitary.
• D)None of the above is correct.

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Definitions:

Restraint Of Trade

Agreement between firms to fix prices, injure competition, or prevent others from entering a market.

Exclusive Bargaining Representative

A labor union that has the sole authority to negotiate the terms of employment on behalf of all employees in a specific workplace.

Trade Union

An organization formed by workers in related sectors to protect their rights, negotiate wages, and improve working conditions.

Common Law

A legal system characterized by case law and precedent, where the principles and rules of law emerge from judicial decisions over time.