Explain the Difference Between a Contract That Is Void and One

question 3

Essay

Explain the difference between a contract that is void and one that is illegal.

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Definitions:

Binding Price Ceiling

A government-imposed price limit on how high a price can be charged for a product or service, set below the market equilibrium, causing shortages.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual market price they receive, essentially the profit producers earn from selling a good.

Consumer Surplus

The variance in the sum total consumers are enthusiastic and financially able to spend on a good or service versus what they end up paying.

Cost of Production

The complete cost involved in producing a product or offering a service, which encompasses the price of raw materials, workforce expenses, and overhead charges.