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Francine Bought a Widget from Simon

question 69

Essay

Francine bought a widget from Simon.In payment of the purchase price,she gave him a cheque for $10 000 drawn on her account at the Bank of Waterloo.Because Francine's account was overdrawn,the bank dishonoured the cheque when Simon presented it for payment.Identify two grounds upon which Simon can sue Francine.Briefly explain which option is easier.


Definitions:

Producer Surplus

The difference between the amount that producers are willing to accept for a good or service and the actual amount they receive.

Market Equilibrium

A situation where the quantity demanded by consumers equals the quantity supplied by producers, resulting in a stable market price.

Deadweight Loss

A reduction in economic effectiveness that happens when a good or service doesn't reach or cannot reach equilibrium.

Price

The monetary value attached to a product or service, determined by the interaction of supply and demand.

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