You Are More Sensitive to a Change in Price If

question 321

Multiple Choice

You are more sensitive to a change in price if you

• A) spend a lot of your income on the good.
• B) spend a small percentage of your income on the good.
• C) buy very little of the good.
• D) do not buy the good regularly.
• E) have a very inelastic demand for the good.

---

Definitions:

Specific Performance

A legal remedy in contract law requiring the breaching party to fulfill the exact terms of the contract, rather than merely compensating the aggrieved party with damages.

Sale of Goods

A transaction in which property consisting of tangible personal items is transferred from seller to buyer for a price.

Reselling the Defective Fixtures

The act of selling goods that have flaws or defects not corrected by the seller, often at a reduced price.

Seller/Lessor in Breach

Refers to a situation where the seller or lessor fails to fulfill their contractual obligations, giving the buyer or lessee potential remedies under the law.