If the Demand for a Product Increases as the Result

question 160

Multiple Choice

If the demand for a product increases as the result of an increase in income, it can be concluded that the

• A) product is an inferior good.
• B) demand for the product is inelastic.
• C) price elasticity of demand for the product equals unity.
• D) product is a normal good.

Understand the concept of negotiability concerning conditional promises and fixed sums.

Understand the concept and implications of express warranties in sales and lease contracts.

Comprehend the legal requirements and effects of the Magnuson-Moss Act on warranties.

Recognize situations where the UCC assumes the seller has valid title and the implications on warranties of title.

---

Definitions:

Inequality

A mathematical expression indicating that two expressions are not equal, using symbols such as ≠, <, >, ≤, ≥.

Annual Insurance

A term referring to insurance coverage that is renewed or applicable for one year, often requiring annual premium payments.

Surcharge

An additional charge, tax, or cost added to the usual cost or bill.

Solution

The value or set of values that satisfies a given mathematical equation or inequality.