One Reason Cartels Have Limited Power Is That Demand Curves

question 115

Multiple Choice

One reason cartels have limited power is that demand curves become:

• A) less elastic over time.
• B) more elastic over time.
• C) fragmented over time.
• D) stable once the cartel is established.

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Definitions:

Lipid-soluble Molecules

Molecules that can dissolve in fats and oils, which allows them to easily pass through cell membranes that are made of lipids.

Greater Concentration

Refers to a higher amount of a substance in a specific volume of solution or mixture when compared to another concentration.

Diffusion

The process by which molecules move from an area of higher concentration to an area of lower concentration, leading to an equal distribution.

Oil-immersion Lens

A type of microscope objective lens used with a drop of oil to increase resolution by reducing light refraction.