When Demand Is Elastic

question 65

Multiple Choice

When demand is elastic,

• A)the percentage change in price is greater than the percentage change in quantity demanded.
• B)price increases raise total revenue.
• C)the buyer is sensitive to changes in price.
• D)the elasticity coefficient is greater than zero,but less than one.

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Definitions:

Rescind Agreement

To legally cancel or revoke an agreement, usually due to issues such as fraud, mistake, or breach of contract.

Economic Interests

Economic interests refer to the financial stakes or concerns that individuals, companies, or countries have in the outcome of a specific transaction, policy, or economic activity.

Misrepresentation

A false statement of fact made by one party to another party, which induces that other party to enter into a contract.

Convicted

Being found guilty of a crime by a court of law or through a guilty plea.