If the Price Elasticity of Demand for Peanut Butter Is

question 255

Multiple Choice

If the price elasticity of demand for peanut butter is 2.4, then peanut butter

• A) has an elastic demand.
• B) has an inelastic demand.
• C) has a unit elastic demand.
• D) is a normal good.

---

Definitions:

FTC Rule 433

Known as the Holder in Due Course Rule, it protects consumers by allowing them to make claims directly against creditors in certain credit transactions.

HDC Doctrine

Refers to the Holder in Due Course doctrine, which provides protections to purchasers of negotiable instruments who take them in good faith, for value, and without notice of certain defects.

Consumer Transactions

The purchase and sale of goods or services between a buyer, typically an individual or household, and a seller for personal use.

Consideration

In contract law, it refers to something of value exchanged by the parties involved that induces them to enter into the agreement.