ABC Hardware Store Orders One Hundred Power Hand-Drills from Drilling

question 29

Multiple Choice

ABC Hardware Store orders one hundred power hand-drills from Drilling Tools Inc. When the hand-drills are delivered, they are all missing pieces. ABC rejects the shipment. To exercise a right to cure, Drilling must

• A)promptly notify ABC of the intent to cure.
• B)pay a cure fee.
• C)pick up the nonconforming tools before the end of the business day.
• D)enter into a new contract with ABC.

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefits to society from the trade.

Price Of Ethanol

The cost at which ethanol, a type of alcohol used as fuel, is sold in the market.

Supply Curve

A graph showing the relationship between the price of a good and the amount of it that suppliers are willing to produce and sell, typically upward sloping.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive, representing the additional benefit or surplus enjoyed by producers due to market conditions.