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Marina CMI [18]
1 year ago
15

When the price of tennis rackets increases, what happens in the market for tennis balls?

Business
1 answer:
JulijaS [17]1 year ago
4 0

 When the price of tennis rackets increases then A decrease in the price of tennis balls will result in an increase in the demand for tennis rackets. An increase in the price of one good can cause the demand for another good to increase if the two goods are complements.

A market is a gathering place for buyers and sellers to facilitate the exchange and transaction of goods and services. The market can be physical, like a retail store, or virtual, like an e-merchant. Other examples are illegal markets, auction markets, and financial markets.

Market structure refers to how different industries are categorized and differentiated based on the degree and type of competition for services and commodities. The four common types of market structure include perfect competition, oligopolistic market, monopoly market, and monopoly competition.

Learn more about the market here

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<u>Full question:</u>

On June 15, Harper purchased equipment for $100,000 from Imperial Corp. for use in its manufacturing process. Harper paid for the equipment with funds borrowed from Eastern Bank. Harper gave Eastern a security agreement and financing statement covering Harper’s existing and after-acquired equipment. On June 21, Harper was petitioned involuntarily into bankruptcy under Chapter 7 of the Federal Bankruptcy Code. A bankruptcy trustee was appointed. On June 23, Eastern filed the financing statement. Which of the parties will have a superior security interest in the equipment?

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<u>Answer:</u>

Eastern parties will have a superior security interest in the equipment because it perfected its security interest within the permissible time limits.

<u>Explanation:</u>

Eastern has a higher security interest because Eastern amended its security interest inside the allowable time deadlines. A perfected security interest in any security interest in an asset that cannot be demanded by any other party.  

Below the Uniform Commercial Code (U.C.C.), to perfect a security interest, a lender has 10 days from the date of the sale of material to perfect the security interest by filing a financing statement.  Possessing registered in the 10-day limit, Eastern has a strong perfected security interest in the material and after-acquired things even though the bankruptcy was recorded two days ahead.

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