What happens as the result of a shortage?
A) There is downward pressure on prices.
B) There is upward pressure on prices.
C) Consumers begin to view the good as an inferior good because they have a hard time finding it.
D) Supply of the good decreases.
B
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Black markets can occur when price ceilings are imposed in a market. Which of the following explains why sellers participate in a black market?
A) Sellers are able to sell the product for a higher than legal price. B) There are more buyers in the black market than in the legal market. C) The demand is perfectly elastic in a black market. D) The demand is perfectly inelastic in a black market. E) The surplus in the legal market means that many sellers can sell their product in the black market.
The study quoted in the text demonstrated that calorie posting did not cause any significant changes in Starbucks revenue over all
Indicate whether the statement is true or false