When the Market Demand Curve Is Relatively Inelastic

question 6

Multiple Choice

When the market demand curve is relatively inelastic,

• A)it is unrealistic for a cartel to form because profits will be lower.
• B)penalties for forming an illegal cartel will be relatively low.
• C)the lower the price the cartel sets, the greater the benefits to the cartel.
• D)the higher the price the cartel sets, the greater the benefits to the cartel.

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Definitions:

Cardboard Containers

Packaging materials made from layers of paper pulp pressed together, commonly used for shipping or storing goods.

Statistic

A statistic is a numerical value that describes a characteristic or measure derived from a sample of data.

Supermarket Customers

Individuals who purchase goods and services from a supermarket.

Sample Proportion

The fraction or percentage of the sample that represents a particular attribute or characteristic.