If the Demand for a Good Is Estimated to Be

question 117

Multiple Choice

If the demand for a good is estimated to be _____, then firms producing the good will experience an increase in total revenue if prices fall.

• A) .05
• B) .75
• C) 1
• D) 2.5

---

Definitions:

Implied Warranty

A warranty that is not explicitly stated but is assumed in a sale, ensuring the product is fit for the intended purpose.

Fitness for a Particular Purpose

An implied warranty that goods will meet the specific needs of the buyer, as known by the seller at the time of purchase.

Merchant

A person or company involved in wholesale trade, especially one dealing with foreign countries or supplying merchandise to a particular trade.

Implied Warranty

An implied warranty is a legal assumption in sales that the goods sold meet certain quality and reliability standards, even if not expressly stated.