If an Offer Is Made by Mail and an Acceptance

question 110

Multiple Choice

If an offer is made by mail and an acceptance by mail is requested, when does a letter revoking the previous offer actually take effect?

• A) At the time that it is posted
• B) At the time that it is received, if before acceptance
• C) At any time before actual performance of the contract has begun
• D) At any time before a letter of acceptance is received by the offeror
• E) Never. A revocation must be done in person.

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Definitions:

Consumer Surplus

The disparity in amounts between what is potentially spent by consumers and what is actually spent on a good or service.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers.

Consumer Surplus

The gap between the price consumers are ready to pay for a good or service and the price they end up paying.

Market Demand

Represents the total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.