Refer to the Diagram of the Market for Product X

question 67

Multiple Choice

Refer to the diagram of the market for product X. Curve Sₜ embodies all costs (including externalities) , and Dₜ embodies all benefits (including externalities) associated with the production and consumption of X. Assuming the market equilibrium output is Q₁, we can conclude that the existence of external

• A)costs has resulted in an overallocation of resources to X.
• B)benefits has resulted in an overallocation of resources to X.
• C)costs has resulted in an underallocation of resources to X.
• D)benefits has resulted in an underallocation of resources to X.

Recognize the enforceability of contracts in various forms, including electronic agreements under contract law.

Identify the requirements for a contract to be valid under the statute of frauds.

Distinguish between oral and written contracts and understand the implications of each under the law.

Understand the role and application of the parol evidence rule in contract disputes.