If the Price Elasticity of Demand for Orange Juice Is

question 243

Multiple Choice

If the price elasticity of demand for orange juice is 0.8, then a reduction in the price of orange juice will cause buyers to buy

• A)fewer bottles of orange juice, and their total spending on orange juice will decrease.
• B)fewer bottles of orange juice, but their total spending on orange juice will increase.
• C)more bottles of orange juice, and their total spending on orange juice will increase.
• D)more bottles of orange juice, but their total spending on orange juice will decrease.

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Definitions:

Drawee Bank

A bank upon which a check or draft is drawn and is responsible for paying the amount to the individual or entity presenting it for payment.

Agent

A person authorized to act on behalf of another, known as the principal, in business transactions or other matters.

Stop Payment Order

A request made to a financial institution to cancel or halt the processing of a check or payment transaction.

Competitive Equality Banking Act

A U.S. law aimed at promoting competition among banks and equalizing regulatory standards across different types of banking institutions.