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:

Legitimacy of New Nation

The recognition and acceptance by the international community and its own citizens of a newly established country's sovereignty and governance.

Foreign Governments

The governing bodies of nations other than one's own, with which diplomatic, economic, and political relations may be engaged.

Separation of Powers

A model for governance that divides the state's powers into distinct branches to prevent any one branch from gaining too much power.

Constitution

The fundamental principles and established precedents according to which a state or other organization is governed.