Pascal Is a Buyer for Kelly Benjamin Department Store in Kentucky

question 29

Multiple Choice

Pascal is a buyer for Kelly Benjamin department store in Kentucky. While Pascal was buying visiting California, he found a solar car on sale for $3,000. Pascal contracts to buy the car for Kelly Benjamin, who wants to buy a solar car. Kelly instructs the seller to ship the car. Under these circumstances:

• A) Kelly is considered to have ratified the contract.
• B) Kelly is not liable since Pascal made the purchase.
• C) Pascal and Kelly are both liable on the contract.
• D) Pascal is considered to have ratified the contract.

---

Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is unattainable.

Units Bought

Refers to the quantity of a particular good or service purchased by consumers or businesses.

Tax Imposed

A financial charge or other levy placed upon an individual or a legal entity by a state or a functional equivalent of a state.

Consumer Surplus

The difference between the amount consumers are willing to pay for a good or service versus what they actually pay.