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allsm [11]
3 years ago
13

Donald buys a subscription to a national magazine that gives him two years for the price of one year. After the two years expire

, Donald continues to receive the magazine for six more months, although he has not subscribed again. The magazine then sends Donald a bill for the magazines he received after the expiration of his subscription. Donald:__________.a. owes nothing.b. can be fined for failing to return the magazines.c. owes half of the bill.d. owes the full amount.
Business
1 answer:
joja [24]3 years ago
7 0

Answer: A (Owes nothing)

Explanation:

Donald subscribed to a magazine that gave him two years for a year. Even though after the subscription expired the second year, he was still given the magazine for six months despite the fact that he didn't subscribe, Donald does not owe the national magazine company.

It was not his fault that he was sent magazines after his subscription expired and hence is not liable to pay any amount to the company. It's their loss and mistake and he should not be held responsible for their mistake.

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What is the substitution effect of a price change? Consumers will buy more of the good whose relative price has risen and less o
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