Petrol Has Inelastic Price Elasticity of Demand in Both Short

question 28

Multiple Choice

Petrol has inelastic price elasticity of demand in both short and long run but chinaware has elastic price elasticity of demand in both short and long run because:

• A)petrol is more important than chinaware.
• B)petrol is a necessity and chinaware is a luxury.
• C)petrol cannot be compared to chinaware.
• D)petrol is a luxury and chinaware is a necessity.

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Definitions:

Frustration Availability

Refers to situations where the doctrine of frustration can be applied to release parties from their contractual obligations.

Costly Performance

Refers to situations where fulfilling the terms of a contract or agreement involves significant expense.

Government Policy

A deliberate plan of action or inaction chosen by public authorities to address a given problem or interrelated set of problems.

Contract Frustration

Refers to a situation where unforeseen events make the fulfillment of a contract impossible, voiding the obligations of the parties involved.