If an Offeree Dispatches Both an Acceptance and a Rejection

question 15

Multiple Choice

If an offeree dispatches both an acceptance and a rejection to an offer, _____.

• A) the acceptance is effective as soon as it is dispatched and a contract is created
• B) the rejection is effective as soon as it is dispatched and no contract can be created
• C) both the acceptance and the rejection are not effective and another response must be issued
• D) whichever response reaches the offeror first will determine whether a contract is created

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Definitions:

Utility Function

A mathematical representation of how consumers rank different bundles of goods according to the level of satisfaction or utility those bundles provide.

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the amount loaned.

Income

The financial gain (earned or unearned) accruing over a given period of time.

Utility Functions

Mathematical expressions used in economics to represent a consumer's preference ranking for various bundles of goods.