Elastic Demand Exists When

question 1

Multiple Choice

Elastic demand exists when:

• A)a small percentage decrease in price produces a smaller percentage increase in quantity demanded and total revenue falls.
• B)a small percentage decrease in price produces a larger percentage increase in quantity demanded and total revenue increases.
• C)an increase in price causes a larger increase in quantity demanded and total revenue falls to zero.
• D)a small percentage decrease in price produces a smaller percentage decrease in quantity demanded and total revenue increases.

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Definitions:

Common Law Doctrine

A principle or precedent set by previous court decisions, forming part of the body of law in common law jurisdictions, as opposed to statutory law.

Contract or Statute

Legal documents that establish rights and obligations; a contract is an agreement between parties, while a statute is a law enacted by a legislative body.

Vicarious Liability

A legal principle that holds an entity or individual responsible for the actions of another party, typically in an employer-employee relationship.

Personal Fault

An individual's responsibility or blame for a mistake, accident, or wrongdoing, often influencing legal judgments or penalties.