Which of the Following Is True

question 113

Multiple Choice

Which of the following is true?

• A)on a linear demand curve, the higher the price the less elastic is demand
• B)on a linear demand curve, elasticity is not constant
• C)at the same price demand is more elastic on the steeper demand curve
• D)none are true

---

Definitions:

Distributorship

A type of franchise in which the franchisor manufactures a product and licenses a dealer to sell the product in an exclusive territory.

Franchise

A business arrangement between an owner of a trade name or trademark and a person who sells goods or services under the trade name or trademark.

Limited Partnership

A partnership consisting of at least one general partner, who manages the business and is liable for its debts, and one or more limited partners, who contribute capital and share in profits but have limited liability.

General Partner

An owner of a partnership who is responsible for its management and is personally liable for its debts.