Val, a Minor, Enters into a Contract to Buy a Kayak

question 69

Multiple Choice

Val, a minor, enters into a contract to buy a kayak and paddle from a Watercraft dealership. Later, after taking possession, Val disaffirms the deal. She

• A) can keep both the kayak and paddle.
• B) can keep the kayak but not the paddle.
• C) can keep the paddle but not the kayak.
• D) must return both the kayak and paddle.

Recognize the effect of price changes on the optimal choice point and consumer welfare.

Distinguish between different types of goods (normal, inferior, complements, and substitutes) based on consumer behavior.

Understand the relationship between the marginal utility of goods and the allocation of income to maximize total utility.

Understand the concepts of normal goods, inferior goods, and Giffen goods.

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Definitions:

Inventory Reporting

The process of accounting for inventory levels, costs, and valuation in financial statements.

Dollar-Value LIFO

An inventory valuation method that uses the last-in, first-out (LIFO) principle, but adjusts for changes in the value of money, typically through the use of a price index.

Cost Index

An index that measures the change in cost of a specific basket of goods and services over time.

Ending Inventory

The aggregate value of goods up for sale at the termination of an accounting interval.