Solomon breaches his contract with Neal to purchase the 500 pairs of socks he had promised to buy. Neal is able to sell the 500 pairs to Renny for a much lower amount. Neal then sues Solomon for dam-ages. Neal will be able to recover:a. the amount in the liquidated damages clause. b.the difference between Solomon's contract price and the amount paid by Renny. c.Solomon's contract price. d.an amount which depends on whether Solomon intentionally breached because he found cheaper socks somewhere else.

b. the difference between Solomon's contract price and the amount paid by Renny

Explanation:

Neal sues Solomon for damages as Solomon breaches his contract with Neal to purchase the 500 pairs of socks from him. Although he can sell the 500 pairs to Renny even then he was in loss only as he sells socks to Renny at a lower amount then it's actual cost.

In this case, Neal will be able to recover the difference between Solomon's contract price and the amount paid by Renny.

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.