Johnson Goods,a U

question 97

Multiple Choice

Johnson Goods,a U.S.company is exporting to Watanabe Trading,a Japanese importer.The two parties agree on a draft,but Watanabe Trading wants it to be a draft that allows for a delay in payment.Watanabe Trading is asking for a(n)

• A)sight draft.
• B)time draft.
• C)bill of lading.
• D)counterpurchase.
• E)offset.

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Definitions:

Supply

The total amount of a product or service that is available for purchase at various prices in a given market.

Price-Elasticity

A measure that indicates how much the quantity demanded of a good responds to a change in the price of that good, with high elasticity indicating a significant response to price changes.

Supply Schedule

is a table or graph showing the quantity of a good that suppliers are willing to sell at different prices over a specific period.

Price Ranges

The spectrum of prices at which a particular good or service is sold in the market.