Avital and Joshua Each Have Their Own Business Selling Lemonade

question 167

Multiple Choice

Avital and Joshua each have their own business selling lemonade in front of their houses. When they each charge 25 cents per glass, their total revenues are equal. However, when they each charge 40 cents per glass, Avital's revenues are bigger than Joshua's revenues. This is because:

• A) Joshua faces a more inelastic demand curve.
• B) Avital faces a more elastic demand curve.
• C) Joshua faces a more elastic demand curve.
• D) Avital faces a less inelastic demand curve.
• E) there is a market failure.

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Definitions:

Federal Antitrust Case

Legal proceedings brought under U.S. federal antitrust laws, such as the Sherman Act or Clayton Act, which address practices affecting competitive conditions in interstate commerce.

Standing

The legal right to initiate a lawsuit, predicated on the party's stake in the outcome of the dispute being sufficiently direct and personal.

Potential Plaintiff

An individual or entity that has the standing and reason to consider initiating a lawsuit but has not yet filed a claim.

Antitrust Thinkers

Experts or intellectuals who focus on the analysis, critique, and reform of competition laws designed to prevent anticompetitive practices and promote market fairness.