If a Payment Amount Is Not Specified in the Agency

question 30

Multiple Choice

If a payment amount is not specified in the agency agreement, a principal's duty to compensate means that the principal must pay the agent:

• A) for the reasonable value of the services provided
• B) at least half the customary rate
• C) for the rational value of the services provided
• D) however much the agent demands
• E) however much the agent's attorney demands

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Definitions:

Income Effect

The change in consumption resulting from a change in real income, which can itself result from changes in wages or prices.

Money Income

The total amount of monetary earnings or receipts a person or household receives from various sources including wages, dividends, and benefits.

Product Increases

Situations in which the output or availability of goods and services in the market expands.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at various prices.