Elasticity of Demand Is Closely Related to the Slope of the Demand

question 222

Multiple Choice

Elasticity of demand is closely related to the slope of the demand curve. The more responsive buyers are to a change in price, the

• A)steeper the demand curve will be.
• B)flatter the demand curve will be.
• C)further to the right the demand curve will sit.
• D)closer to the vertical axis the demand curve will sit.

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Definitions:

Hamer v. Sidway

A significant case in contract law that established the notion that forbearance (refraining from doing something) can be considered a valuable consideration in a contract.

Sufficient Consideration

A necessary element in contract law where something of value is exchanged between parties to form a valid contract.

Illusory Promises

Statements or promises that appear to assure performance or commitment but, due to vague or conditional terms, do not actually bind the promisor to any action.

Forbearance

A temporary postponement of mortgage payments granted by a lender or creditor in lieu of forcing the property into foreclosure, allowing the borrower time to catch up on payments.