Necessities Tend to Have Price Inelastic Demands,whereas Luxuries Have Price

question 81

True/False

Necessities tend to have price inelastic demands,whereas luxuries have price elastic demands.

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Definitions:

Force Majeure

A major, unforeseen, or unanticipated event that occurs and prevents the performance of a contract.

Frustrated Contracts Act

Legislation that deals with contracts that, through no fault of either party, cannot be fulfilled due to unforeseen events.

Termination Clause

A provision in a contract that outlines the conditions under which the agreement can be ended prior to the completion of its term.

Deposit

A sum of money placed in an account or given as security for the performance of an obligation, which may be refundable.