Which of the Following Would Create an Express Warranty

question 63

Multiple Choice

Which of the following would create an express warranty?

• A) A seller promising at the time of sale that he will repair any defects or problems for a year from the sale.
• B) A seller showing the buyer a model and saying,"Yours will be just like this only blue instead of red."
• C) A seller taking a sample from a bin and indicating the purchase will conform to the sample.
• D) All of the above create warranties.
• E) None of the above create warranties.

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Definitions:

Elastic

Describes a market condition where the quantity demanded or supplied of a good or service is sensitive to changes in its price.

Inelastic

Describes a situation in economics where the demand or supply for a good or service is not significantly altered when the price changes.

Inelastic Demand

A situation where the demand for a product does not change significantly when its price changes.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, holding all other factors constant.