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You Own a Store and Have Not Raised Prices Recently-And

Question 75

Multiple Choice

You own a store and have not raised prices recently-and now your store has more customers.Which statement is correct?


A) This can be troublesome because you face a "menu costs" problem because you must not have increased prices fast enough.
B) This can be troublesome because you face a price confusion problem: You don't know if the extra business means that you should open another store, or if the crowds are a result of inflation, which has caused all consumers to buy at a faster rate.
C) This can be troublesome because you face a future price uncertainty problem because you don't know how much to increase your prices now or in the future.
D) It can't be troublesome; it can only be good.
E) This can be troublesome because too many customers generate deflationary pressures for all businesses.

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