Suppose One Market Demand (D₁)has a Price Elasticity of

question 141

Multiple Choice

Suppose one market demand (D₁) has a price elasticity of .65 and a second market demand (D₂) has a price elasticity of .89.In comparing price elasticities of demand,it is proper to say that

• A)D₂ is elastic compared to D₁.
• B)D₂ is inelastic compared to D₁.
• C)D₂ is more inelastic than D₁.
• D)D₂ is more elastic than D₁.
• E)the elasticity of D₁ and D₂ is the same.

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Definitions:

Legal Obligation

A duty enforced by law whereby an individual or entity is required to perform or refrain from performing a certain action.

Consideration

In legal terms, it's something of value exchanged between parties in a contract, making the agreement binding.

Illusory Promise

A statement or promise that appears to assure a commitment but, upon closer inspection, lacks the necessary binding effect to be considered legally enforceable.

Breach Of Contract

A situation where one party fails to fulfill their obligations under a contract.