Candy Bought a Sofa from Max on Credit

question 204

Multiple Choice

Candy bought a sofa from Max on credit. She is to make 5 monthly payments of $200 each. After one month Candy stops making payments. Max is a secured creditor; he may:

• A) may enter Candy's home at any time to take the sofa
• B) do nothing because personal property may not be reclaimed
• C) require Candy to perform manual labor in exchange for the cash payments
• D) force Candy to turn over the sofa plus other property to make up for Max's time and efforts spent on collection
• E) none of the other choices

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Definitions:

Farm Product

Goods that are produced by farming activities, including crops, livestock, and products derived from them like milk or wool.

Inelastic Demand

Describes a market situation where the demand for a product does not significantly change in response to changes in its price.

Inelastic Demand

A type of demand that does not change much when the price of the product changes.