As People Have More Time to Adjust to a Price

question 191

Multiple Choice

As people have more time to adjust to a price change,

• A) demand becomes more elastic, and supply becomes less elastic.
• B) demand becomes less elastic, and supply becomes more elastic.
• C) both supply and demand become less elastic.
• D) both supply and demand become more elastic.
• E) elasticity of both demand and supply tends toward unity.

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Definitions:

Promissory Note

A promissory note is a financial instrument in which one party (the issuer) promises in writing to pay a determinable sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms.

Proper Presentment

The formal process of presenting a document, such as a check or draft, to the appropriate party for payment or acceptance.

Certify A Check

Is the process by which a bank confirms that there are sufficient funds in the check writer's account to cover the amount written on the check, and so guarantees its payment.

Dishonor

The refusal or failure to accept or pay a bill of exchange, promissory note, or other negotiable instrument when due.