If the Price of Chicken Rises from $1

question 94

Multiple Choice

If the price of chicken rises from $1.25 per pound to $1.75 per pound, if the demand curve is consistent with the law of demand, then the quantity of chicken demanded would be predicted to go from

• A)100 pounds to 125 pounds per day.
• B)100 pounds to 75 pounds per day.
• C)100 pounds to 100 pounds per day, because the price of chicken does not affect the quantity demanded.
• D)100 pounds to 0 pounds per day, because consumers would stop purchasing chicken at a price above $1.25 per pound.

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Definitions:

Chrysler

An American automotive company, known for manufacturing and selling vehicles, and part of the larger automotive group Stellantis.

American Motors

A now-defunct American automobile company that was known for producing vehicles from 1954 until 1987.

Alcoa Case

A landmark antitrust case in the United States in which the Aluminum Company of America (Alcoa) was found to have monopolized the aluminum industry through various means, leading to significant implications for antitrust law.

Rule of Reason

A legal doctrine used in US antitrust law that determines the legality of business practices based on their actual impact on market competition.