Which of the Following Statements Is True of a Partially

question 56

Multiple Choice

Which of the following statements is true of a partially disclosed principal?

• A) It refers to a person whose identity is not known to a third party, though the third party does know that an agent represents a principal.
• B) When a principal is partially disclosed, an agent does not have the authority to act.
• C) When a principal is partially disclosed, an agent has the authority to act, but the principal is not liable.
• D) It refers to a person whose identity is known only to a third party and an agent at the time of the agreement.

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Definitions:

Price Elasticity of Demand

The rate at which demand for a product responds to its price being altered.

Short Run

The period in economic theory during which at least one factor of production is considered fixed.

Long Run

A period in which all factors of production can be varied, and no inputs are fixed.

Demand Inelasticity

A situation where the demand for a product does not change significantly with a change in its price.