Tabor is a buyer of file cabinets manufactured by martin. martin's contract with tabor calls for delivery of fifty file cabinets at $40 per cabinet in five equal installments. after delivery of two installments (twenty cabinets), martin informs tabor that because of inflation, martin is losing money and will promise to deliver the remaining thirty cabinets only if tabor will pay $50 per cabinet. tabor agrees in writing to do so. discuss whether martin can legally collect the additional $100 on delivery to tabor of the next installment of ten cabinets.

answer; institution based;

answerorganizational language;

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.