Patios R Us Contracts with Karl's Concrete to Have 35

question 24

True/False

Patios R Us contracts with Karl's Concrete to have 35 yards of concrete delivered to a job site it is working on. Payment is to be made 30 days after delivery. Five days after the concrete is delivered, Patios R Us files for bankruptcy and the filing is accepted by the court. Karl's cannot sue to enforce the contract and receive payment.

---

Definitions:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where market supply and demand balance each other.

SRAS Curve

Short-Run Aggregate Supply curve, representing the relationship between the total supply of goods and services and the price level in the short run.

Real GDP

The measure of the value of all final goods and services produced within a country adjusted for inflation or deflation.

DSO

Stands for Days Sales Outstanding, a measure used by companies to assess the average number of days it takes to collect payment after a sale has been made.