Figure 8-14 -Refer to Figure 8-14.Which of the Following Statements Is Correct

question 16

Multiple Choice

Figure 8-14
-Refer to Figure 8-14.Which of the following statements is correct?

• A)Supply 1 is more elastic than supply 2.
• B)Demand 2 is more elastic than demand 1.
• C)Demand 1 is more elastic than supply 1.
• D)All of the above are correct.

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Definitions:

Draft

Any instrument (such as a check) drawn on a drawee (such as a bank) that orders the drawee to pay a certain sum of money, usually to a third party (the payee), on demand or at a definite future time.

Drawee

The party that is ordered to pay a draft or check. With a check, a financial institution is always the drawee.

Payee

The individual or entity to whom a payment is to be made or has been made, typically in the context of financial transactions.

Promissory Note

A written promise to pay a specified sum of money to a designated person at a fixed or determinable future time.