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A Firm with a Highly Inelastic Demand for Coal Will

Question 65

Multiple Choice

A firm with a highly inelastic demand for coal will:


A) cut consumption more than a firm with a highly elastic demand when price goes up.
B) cut consumption less than a firm with a highly elastic demand when price goes up.
C) refuse to cut consumption for any reason.
D) stop using coal entirely if a tax is imposed.

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