Joe Contracted with Sam,agreeing to Pay Sam $400 If Sam

question 110

Multiple Choice

Joe contracted with Sam,agreeing to pay Sam $400 if Sam would build him a bookcase.The essential terms included the type and quality of the wood,the dimensions,and the date of completion-February 14,2012.The work went more easily than expected and Sam said to Joe,"If you pay me another $50,I will have this finished and be out of here by February 8." Joe agreed.If the bookcase were done to specifications by the 8th,but Joe refused to pay anything,Sam would be entitled in law to

• A) nothing.
• B) $400.
• C) $450.
• D) only $50.
• E) $400 plus damages.

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Definitions:

Complement

A good or service that is used together with another good or service, increasing demand for one another (e.g., printers and ink cartridges).

Economist Expectation

The forecasts or predictions about economic factors like inflation, growth, or interest rates made by economists.

Quantity Demanded

The specific amount of a good or service that consumers are willing and able to purchase at a particular price.

Economic Profits

Profits calculated by subtracting both the explicit and implicit costs from total revenues, representing the additional value created beyond all opportunity costs.