If the Demand for Good a Is More Elastic Than

question 62

Multiple Choice

If the demand for good A is more elastic than the demand for good B,a small increase in supply in both markets will cause

• A)a much greater decrease in price for good A than for good B
• B)a much greater decrease in price for good B than for good A
• C)the price will decrease by the same amount in both markets
• D)only the price of good B will decrease
• E)only the price of good A will decrease

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Definitions:

Restraints Against Trade

Actions or regulations that restrict, limit, or impede the free flow of trade and competition in the market.

Different Levels

Different levels refer to varying degrees or stages in a hierarchy, system, or classification.

Vertical

Relating to a structure or position that is straight up and down, in alignment with the direction of gravity.

Horizontal Restraint

involves agreements among competitors operating at the same level of the market or supply chain to limit competition or manipulate market conditions.