Joyce Makes an Offer to Ashley, but Before Ashley Can

question 40

Multiple Choice

Joyce makes an offer to Ashley, but before Ashley can accept, the state legislature passes a law that makes Joyce's offer illegal. The new statute:

• A) automatically terminates the offer.
• B) has no effect on the legality of the offer since it was legal when made.
• C) creates a condition on the offer.
• D) acts as a rejection of the offer by the offeree.

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Definitions:

Competitive Price-Searcher

A market participant who must examine prices set by competitors to determine their own pricing strategy due to a lack of fixed market price.

Future

A term referring to events that have not yet occurred or the time period in which these events will happen.

Market

A place or system where buyers and sellers interact to exchange goods, services, or information, determining prices through supply and demand.

Competitive Market Economy

An economic system where businesses compete freely without undue interference, allowing supply and demand to determine prices and outputs.