All Sellers May Be Tempted to Raise the Price of What

question 136

Multiple Choice

All sellers may be tempted to raise the price of what they sell,but a negative unintended effect for the seller of raising the price could be __________ in units sold that is large enough to __________ the seller's total revenue earned.

• A) an increase; raise
• B) an increase; lower
• C) a decrease; raise
• D) a decrease; lower

Understand the applications and limitations of the doctrine of promissory estoppel.

Distinguish between enforceable and non-enforceable promises based on the presence of consideration.

Recognize the legal implications of agreements lacking consideration, such as accord and satisfaction.

Identify exceptions to the general rules of consideration, including past consideration and moral consideration.

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Definitions:

Efficient Tax System

A tax system that collects required revenue without excessive government borrowing, and does so in a way that does not impede economic growth.

Tax Revenues

The income that is received by the government from taxpayers, including individuals and businesses, to fund public expenditures.

Deadweight Loss

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Marginal Tax Rate

The rate at which your last dollar of income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.