An Option Contract Requires the Offeror To

question 466

Multiple Choice

An option contract requires the offeror to:

• A) keep an offer open for a specified period of time
• B) offer more than one option
• C) keep an offer under a certain price
• D) limit an offer to a certain number of offerees
• E) give at least a day's notice before withdrawing the offer

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Definitions:

Sellers

Sellers are individuals or entities that offer goods or services in exchange for payment.

Price Ceilings

A legal maximum price set by the government for goods or services, intended to protect consumers by preventing prices from rising above a certain level.

Buyers

Individuals or entities that purchase goods or services for personal use, business operations, or for resale purposes.

Binding Price Ceiling

A government-imposed limit on the price of a good or service that is set below the market equilibrium, leading to shortages.