Use the Table Below to Answer the Following Questions

question 72

Multiple Choice

Use the table below to answer the following questions.
Windsurfing equipment rents for $10 per hour and snorkeling equipment rents for $5 per hour.
Table 8.2.1

-Consider Devon's total utility from snorkeling and windsurfing in Table 8.2.1. Suppose Devon's total income is $35. If the price of windsurfing rises to $20 per hour, how long does Devon choose to windsurf and to snorkel?

• A)1 hour of windsurfing and 3 hours of snorkeling
• B)2 hour of windsurfing and 7 hours of snorkeling
• C)3 hours of windsurfing and 5 hours of snorkeling
• D)4 hours of windsurfing and 3 hours of snorkeling
• E)5 hours of windsurfing and 1 hour of snorkeling

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Definitions:

Oral Contract

An agreement between parties that is made through spoken words and is legally binding, though not written.

Unliquidated Debt

A debt for which the parties either dispute the fact that any money is owed or agree that some money is owed but dispute the amount.

Repayment Schedule

A detailed plan outlining the frequency, amount, and duration of payments owed by a borrower to a lender until the debt is paid off.

Promissory Estoppel

A legal principle that prevents a party from going back on a promise made when the other party has reasonably relied on that promise to their detriment.