If the Price of a Product Does Not Change Immediately,which

question 134

Multiple Choice

If the price of a product does not change immediately,which of the following will cause an initial surplus of a product?

• A)An increase in the demand or an increase in the supply.
• B)A decrease in the demand or a decrease in the supply.
• C)An increase in the demand or a decrease in the supply.
• D)A decrease in the demand or an increase in the supply.
• E)A change in the quantity demanded.

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Definitions:

Adequacy of Consideration

Refers to a legal assessment of whether the consideration (value) given in exchange for a promise or for performance in a contract is fair and reasonable.

Unilateral Contract

A contract where only one party makes a promise or undertakes a performance without requiring a reciprocal agreement from the other party.

Consideration

In contract law, consideration refers to something of value exchanged between parties, forming the basis for a contract.

Promissory Estoppel

A rule in law that prohibits an individual from retracting a pledge given to another if the latter has justifiably depended on this assurance to their harm.