Use the Following to Answer Questions

question 125

Multiple Choice

Use the following to answer questions:
Figure: Costs of Tariffs
-(Figure: Costs of Tariffs) Refer to the figure. In the figure representing the market for leather, domestic suppliers are the high-cost producers of leather. However, import restrictions push the domestic price up to $100. Which area represents the deadweight loss that results?

• A) A
• B) B
• C) C
• D) D

---

Definitions:

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.

Mutual Mistake

Mistake as to the same material fact on the part of both parties to a contract. In this situation, either party can cancel the contract.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the party to be charged, to prevent fraud and perjury in contractual agreements.

Undue Influence Rule

A legal principle that voids contracts or agreements if one party has been unjustly persuaded or coerced by another, compromising their free will.