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Kelly Contracts with Raphael for Raphael to Bring a Pony

question 12

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Kelly contracts with Raphael for Raphael to bring a pony to her daughter's birthday party in exchange for $100. Kelly later learns her daughter is frightened of ponies. She contacts Raphael and Raphael agrees to bring a donkey to the party for $50 instead. Which of the following is true of the original agreement involving the pony and the $100?


Definitions:

Central Planning Model

A system of economy where all choices regarding the creation and use of goods and services are made by the government.

American Capitalism

A system marked by private property, competitive markets, economic incentives, and limited government intervention in the economy.

Product Differentiation

The technique of identifying a product or service as unique in the market to boost its desirability to a chosen target demographic.

Mass Production Techniques

Methods of producing large quantities of products quickly and efficiently using assembly lines and standardized parts.

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