Demand Becomes More Elastic As

question 88

Multiple Choice

Demand becomes more elastic as:

• A)the number of substitutes available declines.
• B)the time period becomes shorter.
• C)a good makes up a larger percentage of a consumer's budget.
• D)a product is defined more broadly.
• E)the producer has more time to respond to price changes.

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Definitions:

Sherman Act

A landmark federal statute in the United States antitrust law passed by Congress in 1890, which prohibits monopolistic and anticompetitive practices.

Antitrust Division

A section of the government tasked with enforcing laws to prevent unfair competition, monopolies, and to preserve market integrity.

Treble Damages

A legal award in a lawsuit that triples the amount of actual or compensatory damages, often granted in cases of willful wrongdoing.

Geographic Markets

Areas delineated by geographical boundaries within which a population might reasonably constitute a market for goods or services, often considered in economic and marketing analyses.