Refer to the Graphs Shown

question 87

Multiple Choice

Refer to the graphs shown. Assume the graph reflects demand in the automobile market. Which arrow best captures the impact of increased gasoline prices on the automobile market?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Legal Detriment

In contract law, doing (or promising to do) something that one has a legal right not to do, giving up (or promising to give up) something that one has a legal right to keep, or refraining from doing (or promising not to do) something that one has a legal right to do.

Hamer v. Sidway

A landmark 1891 New York Court of Appeals case that established the principle of forbearance (refraining from an action) as valuable consideration in contract law.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another party if the latter has relied on that promise to their detriment.

Consideration

In contract law, something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.