When a Third Party Pays a Larger and Larger Share

question 215

Multiple Choice

When a third party pays a larger and larger share of the purchasing price of a good, economic theory indicates that the

• A) demand for the good will decline.
• B) consumers of the good will have less and less incentive to economize on its use.
• C) suppliers of the good will have a stronger incentive to provide the good at low prices.
• D) prices of the good will tend to decline with the passage of time.

---

Definitions:

Restrictive Indorsements

Endorsements placed on a negotiable instrument, like a check, that limit how the instrument can be used or further transferred.

Indorsements for Deposit

Signatures or statements on the back of a negotiable instrument, such as a check, indicating that it can be deposited into a specific account.

Conditional Indorsements

Endorsements made on negotiable instruments that impose certain conditions or limitations on the transferability or payment.

Article 3

often refers to specific sections within legal documents or constitutions that can vary by context, typically detailing certain rights, rules, or procedures.