Assuming That Bus Travel Is an Inferior Good, a Decrease

question 67

Multiple Choice

Assuming that bus travel is an inferior good, a decrease in consumer income, other things being equal, will cause

• A) a downward movement along the demand curve for bus travel.
• B) no change in the demand curve for bus travel.
• C) an upward movement along the demand curve for air travel.
• D) a rightward shift in the demand curve for bus travel.

Identify the factors leading to the frustration of a contract and the consequences thereof.

Describe the processes and conditions under which a contract can be amended or discharged.

Understand the role of specific legal clauses such as force majeure, condition subsequent, and frustration in contracts.

Recognize the principle of specific performance and conditions under which it applies.

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Definitions:

Demand

The level of demand for a good or service based on consumers' readiness and financial ability to acquire it, at various price points, within a designated period.

Gross Income

The total income received before any deductions or taxes are subtracted.

Bumper Crop

An unusually large harvest of a crop, often leading to a decrease in prices due to increased supply.

U.S. Farm Products

Goods produced by the agriculture sector in the United States, including crops, livestock, and their derivatives.