If Misrepresentation Causes a Party to Enter into a Contract

question 4

Multiple Choice

If misrepresentation causes a party to enter into a contract, that party may have the legal right to ____.

• A) cancel the contract
• B) seek reimbursement for damages
• C) cancel the contract and seek reimbursement for damages
• D) either cancel the contract or seek reimbursement for damages, but not both

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Definitions:

Perfectly Elastic

Describes a market condition where demand or supply responds instantaneously to changes in price with an infinite change in quantity demanded or supplied, depicted as a horizontal line in graphical analysis.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting consumer sensitivity to price changes.

Horizontal Line

A straight line that has a constant y-value in the plane Cartesian coordinate system, indicating no change in the vertical direction.

Inferior Goods

For inferior goods, demand decreases as income increases.