Menu costs? Im beginning to think economics does not really explain how most prices are set.
If there was a heat wave, why doesnt the price of ice cream go up?
-
Menu costs? Im beginning to think economics does not really explain how most prices are set.
Is demand actually higher when there is a heat wave? (I don't know that it is or, if so, by how much.)
Can ice cream be stored? What effect would this have on the price-raising strategy if so?
Is there excess capacity--at least in the short term--to make ice cream? What effect would this have on a single participant's decision to raise prices?
I'm beginning to think that you haven't thought much about price theory.
-
Sounds like anything goes. You can monday morning QB anything that happens.
Menu costs? Im beginning to think economics does not really explain how most prices are set.
Is demand actually higher when there is a heat wave? (I don't know that it is or, if so, by how much.)
Can ice cream be stored? What effect would this have on the price-raising strategy if so?
Is there excess capacity--at least in the short term--to make ice cream? What effect would this have on a single participant's decision to raise prices?
I'm beginning to think that you haven't thought much about price theory. -
Sounds like anything goes. You can monday morning QB anything that happens.
Menu costs? Im beginning to think economics does not really explain how most prices are set.
Is demand actually higher when there is a heat wave? (I don't know that it is or, if so, by how much.)
Can ice cream be stored? What effect would this have on the price-raising strategy if so?
Is there excess capacity--at least in the short term--to make ice cream? What effect would this have on a single participant's decision to raise prices?
I'm beginning to think that you haven't thought much about price theory.
A bizarre response to some questions that might have helped you to think about microeconomics.
Cheers, undergread.
-
Consumers are very sensitive to price changes. From a marketing standpoint, it would simply make consumers mad. Secondly, heat waves are predictable. Sellers know a heat wave is going to happen so the price of ice cream already reflects expected future heat waves.
Also, menu costs.Menu costs? Im beginning to think economics does not really explain how most prices are set.