Refer to the Information Provided in Figure 4

question 158

Multiple Choice

Refer to the information provided in Figure 4.1 below to answer the question(s) that follow. Figure 4.1
-Refer to Figure 4.1. Assume that initially there is free trade. If the United States then imposes a 10-cent tax per apple,

• A) the quantity of apples demanded will be reduced by 2 million apples per day.
• B) the quantity of apples supplied by U.S. firms will increase by 2 million apples per day.
• C) the price of apples in the United States will increase to 40 cents per apple.
• D) all of the above

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Definitions:

Commercial Impracticability

A legal doctrine that excuses a party from fulfilling a contract due to unforeseen and extreme difficulties or expenses.

Adequacy of Consideration

The sufficiency of value exchanged in a contract that must be present for the agreement to be legally binding.

Warranty

An express or implied promise by a seller that specific goods to be sold meet certain criteria, or standards of performance, on which the buyer may rely.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States.