A Counterpurchase

question 86

Multiple Choice

A counterpurchase

• A)involves a technology transfer via the sale of a manufacturing plant: as part of the terms,the seller of the plant agrees to purchase a certain portion of the plant output.
• B)is similar to a buy-back transaction but the seller of the plant agrees to buy unrelated goods.
• C)is a form of barter.
• D)involves two parties agreeing to buy a specified amount of goods or services from one another.

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Definitions:

Perfectly Elastic

A situation in economics where the quantity demanded or supplied responds infinitely to changes in price.

Demand Curve

A graphical representation showing the quantity of a good that consumers are willing and able to purchase at various prices.

Degree of Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to a change in its price.

Availability of Substitutes

The presence of alternative goods or services that consumers can use in place of another.