A 4 Percent Increase in the Price of Beer Will

question 65

Multiple Choice

A 4 percent increase in the price of beer will cause a 1 percent decline in the quantity of beer demanded. The demand for beer is:

• A) elastic.
• B) unitary elastic.
• C) inelastic.
• D) elastic at 4 (in absolute value).

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Definitions:

Administrative Tribunal

A quasi-judicial body established to handle disputes regarding administrative decisions made by governmental agencies.

Radio Station

A service that broadcasts audio content over the airwaves for public consumption, often music, news, or talk programs.

Law Merchant

The customs or rules established by merchants to resolve disputes that arose between them, and that were later applied by Common Law judges in cases that came before their courts.

Commercial Matters

Issues or affairs related to commerce, trade, and business activities.