Faiz Enters into a Contract to Buy 350 Acres from Grain

question 70

Multiple Choice

Faiz enters into a contract to buy 350 acres from Grain Farm to cultivate hops and open a brewery. Faiz fails to make the purchase. Grain Farm's remedy is most likely

• A)the amount that Faiz expected to invest in the brewery.
• B)a percentage of Faiz's unrealized profit.
• C)the difference between the contract and market prices of the land.
• D)nothing-Grain Farm still owns the land.

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Definitions:

Equilibrium Quantity

The quantity of a good or service demanded and supplied at the equilibrium price, where market supply and demand balance each other.

Bushels

A unit of volume used primarily in agriculture to measure quantities of grain, fruit, or other produce.

Equilibrium Level

The point at which market supply and demand balance each other, and as a result, prices become stable.

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.