Cato Promises Isabella $40,000 If She Graduates from State College

question 36

Essay

Cato promises Isabella $40,000 if she graduates from State College.Isabella enrolls in State,attends full-time for four years,and graduates.When she asks Cato for $40,000,he says,"I don't re?member promising you $40,000.But if there was a promise,it's not en?forceable,because we didn't bargain for it.And even if there was a prom?ise that would otherwise be enforceable,I revoke it now." Can Isabella en?force Cato's "prom?ise"? Why or why not?

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Definitions:

Price-Elastic

A term that describes how sensitive the demand for a good or service is to changes in its price; high elasticity means demand changes significantly with price changes.

Microsoft

A multinational technology company known for its software products, including the Windows operating system and the Office suite.

Linear Demand Curve

A straight-line graphical representation showing the inverse relationship between the price of an item and the quantity demanded.

Total Revenue

The total income generated by a company from its sales of goods or services before any costs are subtracted.