Multiple Choice
If a union argues that a price cut will boost revenues of the firm and management argues that the opposite is true, then the price elasticity of demand is:
A) unit-elastic from the union's perspective and unit-inelastic from management's perspective.
B) perfectly inelastic from the union's perspective and perfectly elastic from management's perspective.
C) elastic from the union's perspective; inelastic from management's perspective.
D) inelastic from the union's perspective; elastic from management's perspective.
Correct Answer:
Verified
Related Questions