A Local Store Noticed That When It Increased the Price

question 9

Multiple Choice

A local store noticed that when it increased the price of milk from $2.50 to $3.50 per gallon,it sold the same amount of milk per week (165 gallons) .Since everything else remained the same,we would say the

• A)demand for milk is perfectly elastic
• B)demand for milk is elastic
• C)demand for milk is perfectly inelastic
• D)demand for milk is unitary elastic
• E)law of supply does not apply in this situation

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, making them partial owners of the company.

Legal Persons

Entities, such as corporations or governmental bodies, that are recognized by law as having rights and responsibilities similar to natural persons.

Corporate Power

The legal authority and inherent capacities that a corporation possesses to conduct business, enter into contracts, and own assets.

Board of Directors

A group of individuals elected to represent shareholders and make decisions on major company issues, including strategy, governance, and overall direction.