If 100 Units of Product L Are Sold at a Unit

question 33

Multiple Choice

If 100 units of product L are sold at a unit price of $10 and only 25 units are sold at a unit price of $20, one can conclude that demand for L is

• A) perfectly inelastic.
• B) inelastic.
• C) elastic.
• D) infinitely elastic.
• E) unit elastic.

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Definitions:

Uniform Commercial Code

A thorough aggregation of legal provisions steering all commercial operations throughout the United States.

Common Law

A legal system based on precedents and judicial decisions rather than statutory laws.

Lessee

An individual or entity who leases an asset from another, the lessor, under the terms of a lease agreement.

Possession and Use

The act of holding property and utilizing it, which may imply certain rights or obligations under the law.