Equine World Enters into a Contract with FabuloSales to Provide

question 59

Multiple Choice

Equine World enters into a contract with FabuloSales to provide Equine World with a plan to repurpose its marketing strategy. If FabuloSales breaches the contract, Equine World has a duty to

• A) ​reduce the damages that Equine World might otherwise suffer.
• B) ​reduce the loss that FabuloSales might otherwise suffer.
• C) ​punish FabuloSales and deter others from similar acts.
• D) ​take no action.

---

Definitions:

Cross Price Elasticity

A gauge of the responsiveness in the demand for a specific product due to fluctuations in the pricing of another product.

Midpoint Method

A technique used in economics for calculating elasticity by averaging the starting and ending prices and quantities.

Cross-Price Elasticity

Measure of how the quantity demanded of one good responds to a change in the price of another good.

Positive

Affirmative, constructive, or based on factual data; often used in reference to positive statements in economics which describe the world as it is, rather than how it should be.