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Carlos Wrote a Check with the Numbers $4500 and the Written

question 30

Essay

Carlos wrote a check with the numbers $4500 and the written amount as forty-five dollars. Explain how the ambiguity will be resolved.


Definitions:

Elastic Demand

A situation in which the demand for a product is highly responsive to changes in its price.

Arbitrage

The practice of profiting from a price difference between two or more markets, transferring a commodity or financial instrument from a lower-priced market to a higher-priced one.

Inelastic Demand

A situation in economics where the change in the price of a good or service has little to no effect on the quantity demanded by consumers.

Total Revenue

The total amount of money a firm receives by selling goods or services.

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