A Contract Is Created by Which the Terms Are Stated

question 10

Multiple Choice

A contract is created by which the terms are stated to be for consideration in the amount of $3,000. If typewritten in the contract is the term "four thousand dollars," while the amount of $3,000 is printed within the form:

• A) the contract will be interpreted to be for $3,000.
• B) the contract will be interpreted to be for $4,000.
• C) there is a contract but the courts will not specify the dollar amount, as a conflict exists.
• D) a compromise settlement amount of $3,500 will be used.

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Definitions:

Income Rises

A situation where there is an increase in the amount of earnings received by an individual, household, or economic entity.

Perfectly Inelastic

Describes a situation where the demand for a good or service remains constant, regardless of changes in its price.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity that producers are willing and able to sell at that price.

Price Elasticity

A measure of how sensitive the quantity demanded of a good is to a change in its price.