The Following Events Occurred Before the Goods or Parts of the Goods

question 119

Multiple Choice

The following events occurred before the goods or parts of the goods were lost or destroyed. In which case would the buyer suffer the loss?

• A) Al picked out and contracted for a particular computer, and an additional component had to be installed before it was in deliverable state. It was installed, but Al had not been notified that it was ready.
• B) George ordered a Pentium computer system with 8 gigabytes of RAM and a 1 terabyte hard drive advertised by Kicks Computers.
• C) Jaspers contracted for four standard-sized cupboards for the kitchen. The boards had been cut, but they had not been assembled.
• D) Yates chose which of the desks he wanted and contracted for it, but he had agreed to pay and pick it up the next day.
• E) Heinz contracted for all the corn in Silo A. The seller still had to weigh the corn to determine the price.

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Definitions:

Elasticity Negative

A term used to describe the relationship when the demand for a good or service decreases as its price increases, indicating consumers' sensitivity to price changes.

Income Elasticity

A measure of how the quantity demanded of a good or service changes in response to changes in consumer income.

Normal Good

A good whose demand increases when consumer income rises.

Cross-price Elasticity

An indicator showing the responsiveness of the demand for a particular item to variations in the price of a different item.