On January 21, Cara Wrote to Pandora Mfg

question 1

Multiple Choice

On January 21, Cara wrote to Pandora Mfg.asking for shipment of 100 swimsuits on 90-day credit.In the letter, she gave references that indicated that her store was financially sound.Actually she had bills that she could not pay and hoped to turn the business around with the summer bathing suit sales.Pandora ships the suits on March 1; they are received March 15.Cara immediately puts them on display and 27 are sold by March 30 when Pandora discovers that Cara has lied.Pandora may:

• A)recover 73 suits plus incidental damages.
• B)recover 10 suits provided that Pandora acts in 10 days.
• C)recover no suits since it's been 10 days since delivery.
• D)recover 73 suits.

---

Definitions:

Substitution Effect

The economic principle that as prices rise or income decreases, consumers will replace more expensive items with less costly alternatives.

Output Effect

The Output Effect describes how changes in price levels affect the quantity of goods and services produced in an economy, influencing overall economic output.

Substitute Resources

Alternative means or materials that can be used to achieve the same function or production goal in the absence of preferred resources.

Price of Capital

The cost of using capital assets for production, including interest rates on loans or opportunity costs of using own capital.