The Price of Soccer Balls Increases from $35 to $40

question 126

Multiple Choice

The price of soccer balls increases from $35 to $40, and as a result, the quantity demanded decreases from 250 to 200. Over this price range,

• A) demand is elastic.
• B) demand is inelastic.
• C) demand is of unitary elasticity.
• D) there is insufficient information to determine the price elasticity of demand.

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Definitions:

Acknowledged Title Warranties

Legal assurances provided by a seller to a buyer regarding the status of the property title, confirming it is free from liens or claims and can be transferred.

Implied Warranties

Implied warranties are unspoken, unwritten promises that a product will meet a minimum quality and functional standards.

Material Terms

In a contract, the terms that allow a court to determine what the damages are in the event that one of the parties breaches the contract; include the subject matter, quantity, price, quality, and parties.

Express Warranties

Explicit guarantees made by a seller that affirm or promise specific attributes or conditions of a product.