Wanda Owns a Store and Has Not Had to Raise

question 7

Multiple Choice

Wanda owns a store and has not had to raise prices recently-and now her store has more customers.Which statement is correct?

• A) This can be troublesome because she faces a "menu costs" problem because she must not have increased prices fast enough.
• B) This can be troublesome because she faces a price confusion problem: she doesn't know if the extra business means that she 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 she faces a future price uncertainty problem because she doesn't know how much to increase her 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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Definitions:

Deposit

An amount of money placed with a bank for safekeeping or as partial payment for a purchase.

Anticipatory Breach

A situation in contract law where one party indicates, either by words or actions, that they will not fulfill their contractual obligations before the due date.

Performance Danger

Performance danger involves situations or conditions that significantly increase the likelihood of failure or harm during the execution of a task or duty, warranting precaution.

Major Failure

A significant breakdown or malfunction in a system, project, or product that impedes its intended function.