Refer to the Graph Above

question 118

Multiple Choice

Refer to the graph above.If the price of the product increases from $5 to $6 because of a decrease in supply that is shown by curve S,total revenue would:

• A) increase by $300.
• B) increase by $100.
• C) decrease.
• D) stay the same.

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Definitions:

Express Warranty

An explicit guarantee by a seller to a buyer that a product or service meets certain quality and performance standards.

Implied Warranty

A legal term for the assurance that a product will meet a certain standard of quality and functionality without it being explicitly stated by the seller.

Magnuson-Moss Act

A federal law in the United States aimed at improving consumer protection for goods by setting forth warranties and disclosure requirements.

Statue Of Limitations

Legislation that establishes the maximum period following an occurrence within which legal actions must be commenced.