Question 6 Assume that GDP grew from ＄120 billion in 1994 to ＄160 billion in 1995 and the

Question 4

Suppose you are in charge of a toll bridge that is essentially cost free. The demand for bridge crossings Q is given by P=12-2Q.

(a)Draw the demand curve for bridge crossings.

(b)How many people would cross the bridge if there were no toll?

(c)What is the loss of consumer surplus associated with the charge of a bridge toll of ＄6?

Question 7

Who loses from inflation? Please describe carefully.

Question 6

(a) Define cheque.

(b) Explain any five points of the differences between cheques and bills of exchange.

Question 1

What is an offer?

Question 5

In January, 1992, Wang rented a house for three years at a monthly rent of ＄1,000. Wang became unemployed in August, 1992 and wanted to move out. Jone then orally agreed to reduce the monthly rent to half. In January, 1993 Wang was informed to pay the amount of rent he had paid before.

Could Wang insist on paying the half rent until expiration of the contract?

Give reasons for your answer.

Question 3

John wrote to Mary asking "Will you sell your second-hand car? Please tell me your lowest price." Mary replied in a letter: "The lowest price for my used car is ＄2,000." John then sent the second letter to Mary saying that he agreed to buy the used car for ＄2,000. But before Mary received the letter from John, Mary sold her used car to David.

Can John sue Mary to enforce the contract?

Question 7

Write short notes on:

(a) Property.

(b) choses in possession and in action.

(c) right in rem and in personam.