DB Offered to Sell a Cap in Her Possession for $10

question 80

Multiple Choice

DB offered to sell a cap in her possession for $10. Dan said he would pay $5.

• A)There is a contract for the sale of the hat for $10.
• B)There is a contract for the sale of the hat for $5
• C)There is no contract because Dan's counter-offer terminated his power of acceptance.
• D)There is a contract if DB says nothing to Dan's proposal, because then her silence would be an acceptance.

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Definitions:

Price Increase

A rise in the cost of goods or services.

Tax Revenue

The money collected by governments through the process of taxation.

Supply Curve

The supply curve is a graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.

Tax

An essential levy or different assessment exacted from taxpayers by a governmental institution, aimed at covering the costs of government activities and various public financial needs.