You Are the Manager of a Supermarket,and You Know That

question 43

Multiple Choice

You are the manager of a supermarket,and you know that the income elasticity of peanut butter is exactly −0.7.Due to the economic recession,you expect incomes to drop by 15 percent next year.How should you adjust your purchase of peanut butter?

• A) Buy 10.5 percent more peanut butter.
• B) Buy 2.14 percent more peanut butter.
• C) Buy 6.2 percent less peanut butter.
• D) Buy 9.8 percent less peanut butter.

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Definitions:

Destination Contract

A contract under which the seller is required to deliver goods to a place of destination. The title and risk of loss remain with the seller until the goods reach the place of destination.

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The art or craft of sewing or embroidering, often done by hand, on fabric.

Oral Contract

A legal agreement which is made through spoken communication and is as binding as a written contract, although more difficult to prove.

Custom Motorcycle

A motorcycle that has been modified or built to suit specific preferences, often involving alterations to appearance, performance, or comfort.