The Distinction Between Price Confusion Problems and Menu Costs Is

question 101

Multiple Choice

The distinction between price confusion problems and menu costs is that

• A) price confusion results from confusion between relative demand and inflationary pressures,whereas menu costs have to do with people confusing changes in nominal and real wages.
• B) menu costs result from confusion between relative demand and inflationary pressures,whereas price confusion has to do with people confusing changes in nominal and real wages.
• C) price confusion results from confusion between relative demand and inflationary pressures,whereas menu costs relate to producers changing prices,typically during inflationary periods.
• D) menu costs occur during deflation,whereas price confusion problems occur during inflation.
• E) menu costs only affect the food industry,whereas price confusion problems occur in high-tech industries.

Identify the characteristics and enforceability of unilateral and bilateral contracts, including the requirement of consideration.

Recognize the impact and legal significance of the preexisting duty rule in contract modifications.

Discern when a promissory estoppel claim can be validly invoked in contractual disputes.

Analyze the conditions under which a contract can be considered breached, with a focus on agreements relating to sales, services, and debts.

---

Definitions:

Relative Permanence

The notion that while situations or states may not be forever, they have a lasting presence or effect that is more enduring than transient phenomena.

Negotiable Instrument

A financial document providing assurance for the payment of a given amount of money, either to be paid on demand or at an agreed time, with the document containing the name of the payee.

Writing Requirement

A legal condition under certain laws requiring certain contracts to be in writing to be enforceable.

Order Instrument

A financial document that is payable to a specific person or entity, as named or endorsed on the instrument.