If We Are Outside the Four-Fifths Rule, We Have Automatically

question 32

True/False

If we are outside the Four-Fifths Rule, we have automatically broken the law.

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Definitions:

Price Inelastic

Describes a situation where the demand for a good is not very responsive to price changes, meaning consumers buy roughly the same amount regardless of price fluctuations.

Necessity

An essential good or service required for basic survival or societal functioning.

Elastic Demand

describes a market situation where the demand for a product significantly changes in response to changes in its price.

Inelastic Demand

A situation where the quantity demanded of a good or service changes little when its price changes.