Richard Received a Letter in the Mail That He Had

question 78

Multiple Choice

Richard received a letter in the mail that he had just won a cash prize of $2 million in a sweepstakes. The letter said all he had to do was return the winning entry coupon in time. In small print at the end of the letter it stated that the winner had been preselected by a computer and if the winner did not respond, then all the names of those who did respond would be put on a list for a draw for the prize and the odds of winning were 1in 130 million. Richard sent in his entry coupon but did not get the $2 million. When he contacted the company and asked where his money was they told him he had not won, but he insisted that the letter said he was a winner. If Richard wanted to take legal action most likely the result would be

• A)Richard would get nothing as nobody would have believed they had won $2 million
• B)the company would owe Richard $2 million
• C)the company would have to pay Richard a small punitive award of about $15,000 to deter this practice
• D)the company would have to pay $10 million AMP
• E)the executives of the company that created this scheme would go to jail for up to 10 years

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Definitions:

Downsloping Demand

A situation where the demand for a good decreases as the price increases, following the typical law of demand.

Upsloping Supply

A supply curve that increases from left to right, indicating a direct relationship between price and quantity supplied.

Commodity X

A placeholder term for any marketable item produced to satisfy wants or needs, with emphasis on its uniformity and interchangeability with other commodities of the same type.

Demand Equation

A mathematical representation of the relationship between the quantity of a good or service demanded and various factors affecting it, typically including price and income.