A Condition

question 29

Multiple Choice

A condition:

• A) is created only when the phrase "provided that" or a similar phrase introduces it.
• B) is an event that must occur before a party becomes obligated under a contract.
• C) must be expressly stated, although it can be created by informal language.
• D) will not be enforced by the courts unless formal language is used, regardless of the intent of the parties to create a condition.

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Definitions:

Total Expenditures

The sum of all spending or costs incurred by an individual, firm, or government.

Price Elasticity of Demand

An indicator of the responsiveness of the quantity demanded of a product to changes in its price.

Movie Tickets

A form of voucher or certificate that entitles the holder to admission to a film screening.

Elastic

Describes a situation where a change in one variable, such as price, leads to a significant change in another variable, such as demand.