Elton and Florida Sign a Contract by Which Elton Agrees

question 29

Multiple Choice

Elton and Florida sign a contract by which Elton agrees to deliver and install a utility sink on May 15 in exchange for Florida's promise to pay the $150 price on May 15.The delivery and installation of the sink and the payment of the price are ex?amples of

• A)conditions precedent.
• B)concurrent conditions.
• C)conditions subsequent.
• D)implied conditions.

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Definitions:

Substitution

The economic principle where consumers replace more expensive items with less costly alternatives.

Indifference Curve

A graphical representation of different combinations of two goods or services among which a consumer is indifferent, showing preferences of consumption.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, opposite to the behavior observed with normal goods.

Normal Good

A good for which demand increases as the income of consumers increases and decreases as the income of consumers decreases, all else being constant.