Price Elasticity of Demand Can Be

question 35

Multiple Choice

Price elasticity of demand can be:

• A) only greater than 1.
• B) equal to 1, greater than 1, less than 1.
• C) only less than 1.
• D) only equal to 1.

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Definitions:

Warranty of Title

A legal guarantee provided by a seller to a buyer that the seller has the right to transfer ownership and no hidden liens or encumbrances exist.

Risk of Loss

The financial risk borne by a party in the event that goods are lost, damaged, or destroyed during transportation or storage.

Sale or Return

A sales agreement allowing the buyer to return unsold goods to the seller without obligation within a specified period.

On Approval

"On approval" is a transaction condition allowing a buyer to take possession of goods before deciding to complete the purchase, subject to the goods’ return if not satisfied.