Jill's Ordered 1,000 Boxes of White Paper for Use in Copying

question 371

Multiple Choice

Jill's ordered 1,000 boxes of white paper for use in copying machines. The Paper Company delivered 1,000 boxes of orange paper. Jill's rejected the order but had to put the boxes in storage for two weeks until Paper could get the paper and deliver the right paper. Jill's lost sales to Kingaroos while waiting for the right paper. Suing Paper, Jill's may recover:

• A) the reasonable costs of inspecting the goods
• B) the reasonable costs of storing the paper
• C) the value of lost sales
• D) none of the other choices would be covered
• E) all of the other specific choices would be possible

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Definitions:

Price Increase

The rise in the cost of goods or services over time, which can be caused by factors such as inflation, increased production costs, or high demand.

Inelastic Demand

A market situation where the demand for a product does not significantly change with a change in price.

Total Expenditures

The combined amount of money spent by an individual, organization, or government over a specific period of time.

Inelastic Demand

A market situation where the demand for a product does not significantly change in response to changes in price, often applicable to necessities or products with few substitutes.