Suppose a Good Has a Demand Curve Given by Q

question 5

Multiple Choice

Suppose a good has a demand curve given by Q = 20 - 8xP.What is the price elasticity of demand if the price is $2?

• A) -4
• B) -8
• C) 1/2
• D) -1/2

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Definitions:

Duty to Warn

a legal obligation to inform others of a risk or hazard that is not immediately apparent, to prevent harm.

Section 402A

A part of the Restatement (Second) of Torts, introducing the concept of strict liability for producing and selling defective products that cause harm to the consumer.

Shrinkwrap Packaging

A method of packaging where a product is covered with a clear, tight-fitting plastic cover, often used for software boxes and other packaged goods.

Limitation of Remedies Clause

A contract provision that restricts the types of remedies available to the parties in case of breach, often to mitigate liability.