Fact Pattern 10-3

question 25

Multiple Choice

Fact Pattern 10-3
Sally contracts with Tasty Pizza Company to deliver its products. Both parties change their minds, however, and inform each other that they would like to cancel the contract.
-Refer to Fact Pattern 10-3. The next day, Sally changes her mind and again offers to deliver Tasty's products. Tasty is willing to deal, but for a new price. Sally and Tasty

• A) may agree to a new contract, but it cannot include a new price.
• B) may agree to a new contract that includes the new price.
• C) must perform their original contract.
• D) must perform the part of their original contract that is executory.

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Definitions:

Tangent

A straight line that touches a curve at a single point without crossing it, often used to find the slope of the curve at that point.

Substitution Effect

The change in the quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods.

Wage Increase

An upward adjustment in the amount of money that workers are paid per hour, day, or work performed.

Labor Supply

The total hours that workers wish to work at a given wage rate.