The More Inelastic the Demand for a Product, the More

question 209

Multiple Choice

The more inelastic the demand for a product, the more likely that the actual benefit of a subsidy granted on the product will

• A) go to sellers.
• B) go to buyers.
• C) go equally to both buyers and sellers.
• D) do none of the above.

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Definitions:

Chinese Law

The legal system that governs the People's Republic of China, characterized by a combination of statutory law and custom.

District of Columbia

The capital of the United States, Washington D.C., which is not part of any state.

Predominant-Purpose Test

The predominant-purpose test is a legal principle used to determine the character of a contract based on its primary objective, especially in mixed contracts involving elements of both goods and services.

Article 2

A section of the Uniform Commercial Code that governs the sale of goods in the United States.