Jack Is a Guest in Harry's Home

question 5

Multiple Choice

Jack is a guest in Harry's home.While there,he goes into the library and picks up a music box that is part of Harry's collection.Jack overwinds the stem and it breaks.Hoping Harry won't notice,Jack takes the music box for repair to a jeweler who sells similar ones.The jeweler fixes it,but forgets to tag it and an unsuspecting clerk sells it to Robert.Jack is frantic.Can Harry get the music box from Robert?

• A) No,the jeweler gives good title to a bona fide purchaser for value
• B) No,the jeweler was not a merchant with regard to the music box
• C) Yes,Robert was not a buyer in the ordinary course of business
• D) Yes,Robert has assumed only Jack's title,which is no title at all

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Definitions:

Indifference Curve

A graph showing different combinations of two goods that provide equal satisfaction and utility to a consumer.

Marginal Rates of Substitution

The speed at which a buyer is prepared to sacrifice one item for another while keeping their satisfaction constant.

Bads

Are items that people do not desire to have, opposite to goods, which have a negative impact on utility when consumed.

Indifference Curves

Graphical representations in microeconomics showing different bundles of goods between which a consumer is indifferent.