Fact Pattern 15-2 LNG Corporation and Mid-State Utility Company Enter a Contract for a Contract

question 30

Multiple Choice

Fact Pattern 15-2
LNG Corporation and Mid-state Utility Company enter a contract for a sale of liquefied natural gas. LNG draws a draft unconditionally ordering Mid-state Utility to pay $50,000 to LNG's order in sixty days. Mid-state Utility signs and dates the draft.
-Refer to Fact Pattern 15-2.On this instrument, Mid-state is

• A) ​the drawee.
• B) ​the drawer.
• C) ​the maker.
• D) ​the trader.

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Definitions:

Marginal Rate

Refers to the rate at which one quantity changes with respect to a change in another quantity, commonly used in the context of taxes and interest rates.

Substitution Effect

The change in consumption of goods in response to a change in their relative prices, holding the consumer's level of utility constant.

Total Utility

The total satisfaction or benefit that a person derives from consuming a certain quantity of goods or services.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase at given prices and within a fixed budget.