Sally Is an Average Shopper, with Average Income

question 276

Multiple Choice

Sally is an average shopper, with average income. When she is in the store she buys a few items which cost more than $20, several items which cost between $5 and $20, and many items which cost less than $1. The price elasticity of Sally's demand for these goods most likely ____.

• A) increases as the price decreases
• B) decreases as the price decreases
• C) increases as the price increases
• D) decreases as the price increases
• E) remains constant over all price ranges

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Definitions:

Express

Implies clear and direct communication or conveyance of an idea, intention, or item without any ambiguity.

Executory

A term applied to a contract in which not all of the terms have been fully performed.

Doctrine of Substantial Performance

A legal principle acknowledging that if a party has performed enough of its contractual obligations, it may warrant payment, minus damages for incomplete work.

Complete Performance

Contract performance that occurs when all aspects of the parties’ duties under the contract are carried out perfectly.