Amble Country Stables contracts to buy 1,000 horseshoes from Burleigh Blacksmith,Inc.,for $1 per shoe.When the market price decreases to 50 cents per shoe,Amble refuses to go through with the deal.Burleigh can recover
A)$1,500.
B)$1,000.
C)$500.
D)$0.

Question

Quizplus · Accepted Answer

Burleigh can recover the difference between the contract price and the market price, which is $500 (1,000 shoes x $0.50 difference per shoe). Therefore, the correct choice is C.

Amble Country Stables Contracts to Buy 1,000 Horseshoes from Burleigh