Avital and Joshua Each Have Their Own Business Selling Lemonade

question 167

Multiple Choice

Avital and Joshua each have their own business selling lemonade in front of their houses. When they each charge 25 cents per glass, their total revenues are equal. However, when they each charge 40 cents per glass, Avital's revenues are bigger than Joshua's revenues. This is because:

• A) Joshua faces a more inelastic demand curve.
• B) Avital faces a more elastic demand curve.
• C) Joshua faces a more elastic demand curve.
• D) Avital faces a less inelastic demand curve.
• E) there is a market failure.

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Definitions:

Congress

The national legislative body of the United States, consisting of two chambers: the Senate and the House of Representatives.

Federalism

A system of government in which power is divided between a central authority and constituent political units.

U.S. Constitution

The U.S. Constitution is the supreme law of the United States, establishing the framework for the federal government and the rights of the citizens.

Corporate Speech

Refers to the legal doctrine that extends certain protections of free speech to corporate entities, often related to political or marketing activities.