Firm X owns both a grocery store and the parking lot outside the grocery store. In order to increase the traffic at the store, the store should a. Decrease the prices on the goods sold in the store b. Increase the parking rates c. All of the above d. None of the above

a. Decrease the prices on the goods sold in the store

Explanation:

When the parking rates are increased, customers will be discouraged from coming to Firm X's grocery store as they know they will have to pay an extra an amount of money just to shop at your grocery store. Therefore customers will not want to come to the grocery store, thereby reducing the traffic at the store.

On the other hand, decreasing the prices on the goods sold in the store will attract more customers as their purchasing power has been increased. This in turns increases the traffic at the store.

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