S Agrees to Sell B 10,000 Widgets at a Price

question 68

Multiple Choice

S agrees to sell B 10,000 widgets at a price of $1.00 per widget.After B breaches the contract,S resells the widgets for $1.10 per widget in a public sale.S also saved $200 in shipping costs.What amount does S owe B?

• A) $1,200
• B) $1,300
• C) $1,000
• D) Nothing

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Definitions:

Discarding

The process of eliminating or getting rid of something that is no longer useful or required.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Conjunction Fallacy

A logical fallacy where people incorrectly judge the probability of the conjunction of two events to be more likely than the probability of either event alone.

Gambler's Fallacy

A cognitive bias where an individual erroneously believes that past events will affect the likelihood of future independent events, often seen in probability contexts.