Contractual Capacity Includes the Financial Ability to Pay for the Benefits

question 39

True/False

Contractual capacity includes the financial ability to pay for the benefits of a contract.​

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Definitions:

Market Period

A period during which sellers are unable to change quantity offered for sale in response to a change in price.

Quantity Supplied

The amount of a product that producers are willing to supply at a given price.

Elasticity of Demand

This term measures how sensitively the quantity demanded of a good responds to a change in its price; a rephrased definition of Elasticity related to demand.

Very Inelastic

Describing a situation where the demand or supply for a good or service is largely unaffected by changes in price.