Studies on consumer behavior have found that most people value fairness enough that they will refuse to participate in transactions they consider unfair, even if they are worse off as a result
How does this affect a firm's decision to raise prices in the event of a temporary increase in demand?
If the firm chooses to raise prices, consumers will consider this price increase unfair and might choose to buy elsewhere. This loss of consumer goodwill could lead to lower profits in the long run. It is rational for firms to forgo raising prices in the short run to keep customers happy. This can lead to increased profits in the long run.
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From the Civil War up to 1914, the United States adhered to a
A) gold standard. B) silver standard. C) bimetallic standard. D) bronze standard. E) copper standard.
The formula for the cross-price elasticity of demand is percentage change in
A. quantity demanded of B/percentage change in income. B. quantity demanded of B/percentage change in price of A. C. quantity demanded of B/percentage change in price of B. D. price of B/percentage change in quantity demanded of A.