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For a Particular Good, a 12 Percent Increase in Price

question 172

Multiple Choice

For a particular good, a 12 percent increase in price causes a 3 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?


Definitions:

Substituted Agreement

An agreement that replaces a previous contract, often to revise terms or settle a dispute.

Verbal Contract

An agreement between parties made through spoken words rather than in written form, still legally binding but harder to prove.

Breach

The violation or non-fulfillment of a legal agreement, duty, or contract.

Discharging

The process of fulfilling or settling a debt, obligation, or legal liability, effectively freeing one from the responsibility.

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