Alice Goes to the Local Supermarket to Purchase One Package

question 175

Multiple Choice

Alice goes to the local supermarket to purchase one package of her favorite taco shells. She often pays $1.50 for a package, but she finds they are on sale for $1 each. According to the law of demand, one can expect Alice to:

• A)purchase an alternative good.
• B)purchase more than one package of taco shells.
• C)decide not to purchase taco shells on this visit.
• D)buy only one package of taco shells.

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Definitions:

Direct Costs

Expenses that can be directly tied to the production of specific goods or services, such as labor and materials.

Floatation Costs

The various costs associated with taking a company public, including legal, accounting, and marketing expenses, among others.

Firm Commitment

A definitive promise by an underwriter to purchase all of an issuer's securities at a specified price for resale to the public.

Going Private

A corporate transaction in which the entire equity of a publicly traded firm is purchased by a small group of investors.