When Price Is Too Low, We See

question 56

Multiple Choice

When price is too low, we see

• A) excess supply.
• B) shortages.
• C) unsold products.
• D) rising inventories.
• E) frustrated sellers.

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Definitions:

Lack of Capacity

A legal term referring to an individual's inability to enter into a contract due to mental incompetence or age.

Duress

Unlawful pressure exerted upon a person to coerce them into an action against their will, often making a contract voidable.

Undue Influence

An unfair manipulation by one person over another, often leading the influenced party to make decisions that are not in their best interest.

Affirming Contract

The act of formally agreeing to the terms of a contract, thereby making it legally binding.