A Person Who Makes a Promise Without Requiring Some Benefit

question 20

Multiple Choice

A person who makes a promise without requiring some benefit in return has made a:

• A) gratuitous promise.
• B) barren promise.
• C) pledge or subscription.
• D) onerous contract.

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Definitions:

Equilibrium

A state in a market where the quantity of goods supplied is equal to the quantity of goods demanded, with no pressure to change the price or quantity.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product or service, often set below the equilibrium price to keep goods affordable.

Consumer Surplus

The disparity between what consumers are ready and able to spend for a product or service and the amount they end up paying.

Price

The financial expenditure involved in obtaining a product or service.