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. perfectly inelastic from the union's perspective and perfectly elastic from management's perspective.
B. inelastic from the union's perspective; elastic from management's perspective.
C. elastic from the union's perspective; inelastic from management's perspective.
D. unit-elastic from the union's perspective and unit-inelastic from management's perspective.
Answer: C
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