Farmer Gibson Ordered an Irrigation Pump from Sinclair Farm Supply,where

question 44

Multiple Choice

Farmer Gibson ordered an irrigation pump from Sinclair Farm Supply,where he has an open account.When they attempted to deliver,he refused to accept,claiming he could get a better deal elsewhere.Legally,Gibson could be charged for all damages that naturally flow from this breach.Assuming Sinclair made free deliveries and it had more pumps than customers,the damages would include

• A)the damages associated with Gibson not being able to properly irrigate his land.
• B)only the expected profits on this item.
• C)transportation as well as a restocking charge.
• D)only two-way transportation to Gibson's farm.
• E)expected profits,delivery charge,and a restocking charge.

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Definitions:

Price of X

Refers to the current market price of a specific good, service, or commodity.

Utility Function

A mathematical representation that ranks an individual's preferences over a set of goods or services, showing their relative satisfactions or levels of utility.

Bliss Point

A term in psychology and economics indicating the optimal level of consumption where any further increase would lead to dissatisfaction.

Good Y

A symbolic representation often used in economics to denote a particular good or commodity in theoretical models and analyses.