In Equilibrium, If $1 =

question 7

Multiple Choice

In equilibrium, if $1 = .5 pounds sterling and 1 pound sterling = 40 Swiss francs, the exchange rate between dollars and Swiss francs will be:

• A)1 Swiss franc = $.10.
• B)1 Swiss franc = $.20.
• C)$1 = 80 Swiss francs.
• D)$1 = 20 Swiss francs.

---

Definitions:

Counteroffer

A proposal made in response to an offer, which effectively rejects the original offer and proposes new terms for an agreement.

Gap-Filling Presumptions

Legal principles or standards applied in contract law to address situations where the parties' agreement does not specify certain terms or conditions.

Mirror Image Rule

A principle in contract law stating that an offer must be accepted exactly without modifications for a valid contract to be formed.

Material Changes

Significant alterations or modifications that could affect a company’s financial condition or the value of its shares, requiring disclosure to shareholders and regulatory bodies.