Fact Pattern 17-A2 (Questions A16-A19 Apply)

question 8

Multiple Choice

Fact Pattern 17-A2 (Questions A16-A19 apply)
Evelyn,who owns and operates Eve's Farm & Garden Company,agrees to sell Hill & Dale Produce,Inc.,fifty bush?els of apples.
-Refer to Fact Pattern 17-A2.A strike delays delivery of the apples by ten days.Evelyn's contract with Hill & Dale is

• A)breached.
• B)discharged.
• C)not affected.
• D)suspended.

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Definitions:

Long-run Adjustments

Changes a firm or industry makes over a long period to adapt to changes in demand, technology, or other economic factors.

Allocative Efficiency

Occurs when resources are distributed in a way that maximizes the net benefit to society, with goods and services produced at the level where the last unit provides a benefit equal to its cost of production.

Purely Competitive Industry

An industry characterized by many sellers offering identical products where each seller is a price taker due to market forces.

Supply

The complete volume of a good or service offered for sale at a specified price range in a certain market area.