Answer:
The contract is breached.
Step-by-step explanation:
A contract is a binding agreement between two parties, where the parties involved are bound to observe the terms mutually decide, no matter what changes occur.
When Flora made a contract with the grocery to sell her products at a certain price, she was bound to do so, irrespective of changes in price level. Since, she does not observes the terms of the contract, the contract is breached.