Author Question: Why are prices for groceries and household items typically higher at a 24-hour convenience store ... (Read 121 times)

drink · **on:** Jun 29, 2018

Why are prices for groceries and household items typically higher at a 24-hour convenience store compared to stores open from 6 am to 11 pm?

A) Shoppers' options are generally fewer in the middle of the night.
B) The elasticity of demand of the middle-of-the-night shopper is typically higher than the mid-day shopper's elasticity.
C) The owners of the 24-hour stores are typically more selfish than the others.
D) The owners of the 24-hour stores are more interested in maximizing net revenue compared to the others.

Question 2

Refer to the scenario above. Which of the following is likely to be true if Joe is known to be trustworthy?

A) Multiple equilibria will occur.
B) A Nash equilibrium will occur.
C) A socially inefficient equilibrium will occur.
D) A dominant strategy equilibrium will occur.