Part 7
The Sherman Antitrust Act was written in rather vague terms, so the _______ Act was passed in 1914 to limit specific activities that tend to reduce competition.
Clayton
When the value of the Price Elasticity of Demand Coefficient equals 0, the demand is said to be perfectly inelastic, which means that demand does not ________ at all in response to price increases.
Decrease
The Price Elasticity of Demand is calculated by dividing the percentage change in ______ by the percentage change in price.
Demand
Demand is said to be _______ when a change in price causes an opposite change in total revenue--an increase in price will decrease total revenue, and vice versa.
Elastic
The Price Elasticity of Demand Coefficient is the absolute value, or non-negative value, of the Price Elasticity of Demand formula, and is used to determine how _______ the demand is.
Elastic
The ________________________ Act of 1914 created a federal agency which regulates marketing practices and prohibits unfair methods of competition.
Federal Trade Commission
Demand is said to be inelastic if a change in price results in the same change in total revenue--raising the price _________ total revenue.
Increases
The Sherman Act prohibits contracts, combinations, or conspiracies to restrain trade. Under this law, __________ are illegal.
Monopolies
Price Elasticity of Demand provides a measure of the sensitivity of demand to changes in _____.
Price
Total revenue is calculated by multiplying the _____ by the number of units sold.
Price
The Robinson-Patman Act of 1936 prohibits price discrimination among ___________ and retailers where the effect of such discrimination tends to reduce competition among the purchasers or gives one purchaser a competitive edge.
Wholesalers