Which of these statements about cartel pricing power is true?
A. The larger the share of world production controlled by the cartel, the higher the price set by the members will be.
B. The more inelastic the market demand for the cartel's product, the lower will be the price that the cartel members can charge to maximize profits.
C. The larger an unexpected increase in unsold inventories is, the higher the price set by the cartel members will be.
D. The greater the elasticity of supply of the non-cartel members, the higher the price set by the cartel members will be.
Answer: A
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