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:

Consumer Products Industry

The sector of the economy that manufactures and sells goods used by the general public, ranging from food and beverages to electronics and household items.

Geographical Structures

Organizational structures that group activities based on geographical regions or territories.

Nearby Locations

Places or venues that are in close proximity to a certain point of interest or reference.

Matrix Organizations

Organizational structure that combines functional and product-based divisions, allowing for more flexibility and better responsiveness to changing environments.