Question

Susan O Rourke hired an attorney to represent her in a court case involving an auto accident. The attorney charged O Rourke a $2,000 retainer fee for his services. Terry Thomas needed a haircut the local stylist charged him $12 for her services. Aaron Mathison mowed his neighbor s lawn; in exchange, the neighbor roto-tilled Mathison s garden. The attorney fees paid by O Rourke, the $12 charged by the hair stylist, and the exchange of lawn mowing for garden tilling are all examples of
a. price.
b. premiums.
c. barter.
d. outlays.
e. the profit motive.

Answer 1

Answer:

A. Price.

Explanation:

A price is the quantity of payment or compensation given by one party to another in return for one unit of goods or services. A price is influenced by both production costs and demand for the product. A price may be determined by a monopolist or may be imposed on the firm by market conditions.