Maurice Is Excited Because a Developer Plans a Subdivision Full

question 22

Essay

Maurice is excited because a developer plans a subdivision full of high-priced homes that will adjoin his property.Maurice is so pleased that he puts in a new swimming pool to celebrate.Maurice believes that the subdivision will significantly increase the value of his property.The developer,however,changes his mind and decides not to develop the subdivision.Maurice is angry and asks if he can sue the developer,particularly since he can establish reliance.What would you tell Maurice,and why? Discuss whether you agree with the law on this issue,and why or why not.

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Definitions:

Perfectly Inelastic Demand Curve

A perfectly vertical demand curve; no matter what the price is, the quantity demanded remains the same.

Very Inelastic

Describes a situation in which the demand for a product or service shows little to no response to changes in price.

Market Period

An extremely short duration in which the supply of a good is fixed, unable to adjust to changes in demand, typically because the period is so brief.

Productive Capacity

The maximum output a firm or economy can produce when using all available resources efficiently.