Use This Fact Situation to Answer the Related Questions That

question 46

Multiple Choice

Use this fact situation to answer the related questions that follow. On January 1,A and B enter into a contract under which B agrees to renovate A's house by September 1 for $60 000.00.By June 2,B has not yet started the renovations and A is getting worried,so A tells B that he will pay him an extra $5000.00 if B completes the renovations on time.B completes the renovations by September 1st and now asks A for $65 000.00.
In this situation,

• A)A's promise to pay B an extra $5000.00 is not supported by fresh consideration.
• B)A's promise to pay B an extra $5000.00 is made before the contract is over.
• C)the consideration for the contract on January 1 is $60 000.00.
• D)there was a contract on January 1 that must be performed by September 1.
• E)all of the above

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price over a specified period.

Supply

The total amount of a product or service that is available to consumers at a given price.

Supply Curve

A visual chart that illustrates the connection between a good's price and the amount of it producers are ready to offer.

Aluminum

A silvery-white, lightweight metal, it's the most abundant metal in the Earth's crust and is used in a vast array of products from cans to airplanes.