Sarah's Demand Curve for Shoes Has the Same Slope as Pete's;

question 14

Multiple Choice

Sarah's demand curve for shoes has the same slope as Pete's; however,it lies to the right of Pete's.An increase in the price of shoes will cause

• A) Sarah to incur a greater loss of consumer surplus than Pete will.
• B) Pete to incur a greater loss of consumer surplus than Sarah will.
• C) Sarah and Pete to incur the same loss of consumer surplus.
• D) Sarah's demand curve to shift closer to Pete's.

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Definitions:

Output Contract

A legal agreement in which a seller agrees to sell all the production to a particular buyer, who in turn agrees to purchase the entire output.

Needs Contract

A contract or agreement tailored to address and fulfill specific needs of the parties involved.

Good Faith

Acting with honest intentions without seeking to take unfair advantage in a transaction or situation.

Rule Of Requirements

A principle in contract law that dictates a seller must supply only the quantity of goods that a buyer requires, no less and no more.