The Benson Bearing Company Sells Textron,Inc

question 37

Multiple Choice

The Benson Bearing Company sells Textron,Inc.a quantity of baseball bats that were stored in an independent warehouse at the time of the sale.The contract says that Textron is to pick up the bats at the warehouse.The risk of loss passes to Textron:

• A)at the time of the contract.
• B)at the time it receives a negotiable warehouse receipt for the bats.
• C)at the time it pays for the bats.
• D)at the time it picks up the bats.

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Definitions:

Income Elasticity Coefficient

A measure indicating how much the quantity demanded of a good responds to change in consumer income.

Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in successive quarters.

Income Elasticity

A measure of how much the demand for a product or service changes in response to changes in consumer income.

Inferior Good

A type of good for which demand decreases as the income of individuals increases, opposite to normal goods.