A Union Argues That a Price Cut Will Boost the Revenues

question 63

Multiple Choice

A union argues that a price cut will boost the revenues of the firm, while management argues that the opposite is true. This suggests that the price elasticity of demand is

• A)unit-elastic from the union's perspective and unit-inelastic from management's perspective.
• B)perfectly inelastic from the union's perspective and perfectly elastic from management's perspective.
• C)elastic from the union's perspective, inelastic from management's perspective.
• D)inelastic from the union's perspective, elastic from management's perspective.

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Definitions:

Radula

A toothed, chitinous ribbon in the mouth of molluscs, used for scraping or cutting food before ingestion.

Molluscan

Pertaining to mollusks, a diverse group of invertebrates which includes species like snails, clams, and octopuses, characterized by a soft body and, in many cases, a calcium carbonate shell.

Conspicuous Segmentation

The clear division of a body or structure into distinct parts, commonly observed in organisms like worms and arthropods.