If a Price Increase from $20 to $40 Causes Quantity

question 95

Multiple Choice

If a price increase from $20 to $40 causes quantity demanded to decrease from 100 units to 50 units,one can conclude that demand for the product is _____.

• A)inelastic
• B)elastic
• C)perfectly inelastic
• D)infinitely elastic
• E)unit-elastic

---

Definitions:

Integrative Negotiation

Win-win negotiation that assumes that mutual problem solving can enlarge the assets to be divided between parties.

Creativity

The ability to produce new and unique ideas, solutions, or products through imaginative thinking.

Copious Information Exchange

Extensive sharing and transferring of information within an organization or between organizations, facilitating knowledge dissemination and decision-making.

Conflict Stimulation

The deliberate act of inducing conflict with the aim of making existing conflicts more obvious to enhance problem solving and improve group dynamics.