Sally Is an Average Shopper, with Average Income

question 276

Multiple Choice

Sally is an average shopper, with average income. When she is in the store she buys a few items which cost more than $20, several items which cost between $5 and $20, and many items which cost less than $1. The price elasticity of Sally's demand for these goods most likely ____.

• A) increases as the price decreases
• B) decreases as the price decreases
• C) increases as the price increases
• D) decreases as the price increases
• E) remains constant over all price ranges

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Definitions:

Perfect Tender Rule

A principle in contract law requiring goods delivered under a sales contract to exactly meet the terms of the agreement.

Contract Specifications

Detailed, precise descriptions of the terms, conditions, and obligations agreed upon by parties in a contract, often defining the scope, quality, and timelines of work or services.

Minor Flaws

Small defects or imperfections in an item or product that do not significantly affect its use or value.

Course of Performance

The conduct between parties under a contract that indicates what they consider to be the agreement's requirement, used to interpret the contract's terms.