Andy Seagroves Purchased a Computer from Best Buy

question 153

Multiple Choice

Andy Seagroves purchased a computer from Best Buy.Best Buy did not disclose to him that the computer was a return item.There was no indication of any price difference between the computer Andy bought and the unopened computers.Andy experiences significant difficulties with the computer and returns it to Best Buy.Andy indicates that he would like to have a new computer and that the price is now $150 more.Best Buy indicates that it is happy to take the return on the computer and credit Andy's account,but that it has no further liability.

• A)Best Buy's position is correct.
• B)Andy has no damages since Best Buy took back the computer.
• C)Andy is entitled to recover the price difference so that he can replace the computer.
• D)Andy is entitled to the return, but no additional damages.
• E)none of the above

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Definitions:

Market Demand Curve

A graphical representation showing the relationship between the price of a good and the total quantity demanded by all consumers in the market.

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, often associated with public goods and services.

Free-Market Economy

An economic system where prices are determined by unrestricted competition between privately owned businesses without government intervention.

Negative Externality

A situation where a third party suffers costs or harm as a result of an economic transaction between other parties, without compensation, such as pollution from a factory affecting nearby residents.