A Bargaining Deadlock Will Result If the Expectations of the Parties

question 56

True/False

A bargaining deadlock will result if the expectations of the parties fall within the bargaining zone.

---

Definitions:

Inelastic

Describes a situation where the demand or supply for a good or service is not significantly changed by variations in price.

Elastic

Describes a situation in which the demand or supply for a good or service significantly changes in response to a change in price.

Coefficient

A numerical or constant factor in an equation that multiplies the variable, indicating the degree or level of some effect.

Price Elasticity of Supply

The measure of how the quantity supplied of a good changes in response to a change in its price.