In the Daily Newspaper, Webber Motor Company Advertised a New

question 46

Multiple Choice

In the daily newspaper, Webber Motor Company advertised a new convertible at a special reduced price. When Luhr tried to purchase one at the advertised price, Webber's salesperson stated that they had only one of that model and that it had already been sold. Luhr insisted that Webber Motor Company must sell him one at the reduced price, as he was accepting their newspaper offer. Is Luhr correct?

• A) Yes; an advertisement in a newspaper is a communicated offer to all customers who wish to accept the offer.
• B) Yes; all advertisements are general offers that result in binding agreements when accepted by customers.
• C) No; newspaper advertisements are only invitations to customers to make an offer.
• D) No; advertisements are offers, but they do not have to be accepted by the advertiser once the product is sold out.

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Definitions:

Entire Income

The total amount of earnings, including wages, salaries, bonuses, and other income sources, received by an individual or household.

Units Of X

A generic term for the measure or quantity of something, such as a product or resource, often used in discussions of production or economic models.

Units Of Y

Units of Y typically refer to a quantifiable measurement in economic models, representing output, goods, or other variables of interest.

Units Of X

The individual or quantifiable elements used to measure or quantify a particular variable or good, labeled here as "X" for generality.