Identify the Truthfulness of the Following Statements

question 38

Multiple Choice

Identify the truthfulness of the following statements.
I. IEPR applies to any firm facing a downward-sloping demand curve for its products, not just a monopolist.
II. Firms producing differentiated products face downward-sloping demand

• A) I and II are true.
• B) I and II are false.
• C) I is true; II is false.
• D) II is true; I is false.

---

Definitions:

Exaggerated Sales Talk

Promotional statements and claims that stretch the truth or embellish the virtues of a product or service beyond reasonable limits.

Misleading Claims

False or deceptive statements made, especially in advertising or marketing, that can misguide consumers regarding the true nature or benefits of a product or service.

Unfair Claims

Practices in the insurance industry that unreasonably delay, deny, or reduce payment to policyholders.

Emotional Distress

A legal term denoting a claim for damages in lawsuits for actions causing psychological harm due to negligence or intentional acts.