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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