The Doctrine of Frustration

question 2

Multiple Choice

The doctrine of frustration

• A)if not applied,discharges the plaintiff from her or his contractual obligations.
• B)can be applied in cases where the subject matter did not exist at the time of the agreement.
• C)only applies where there is a Frustrated Contracts Act.
• D)is a practical and reasonable solution to be imposed by a court under extreme circumstances that were not contemplated by the contracting parties.
• E)could be applied successfully as a defence in a case where honouring contractual obligations would bring hardship upon the promisor.

Grasp how consumers maximize utility given their budget constraints.

Recognize the equal marginal utility per dollar spent rule in utility maximization.

Apply the concept of utility maximization to adjustments in consumption when prices change.

Identify the impact of price changes on the consumption of goods and understand substitution effects.

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Definitions:

Income Elasticity

A measure of how the quantity demanded of a good or service changes in response to changes in consumer income.

Normal Good

A good whose demand increases when consumer income rises.

Cross-price Elasticity

An indicator showing the responsiveness of the demand for a particular item to variations in the price of a different item.

Pineapples

Tropical fruits that are known for their sweet and tart flavor, commonly used in cooking and baking.