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History, 05.05.2021 21:40 tcraig833

Steve sells lemonade at the corner of a busy street. He charges $1.50 for a cup and easily sells 200 cups a day. However, one afternoon another lemonade stand appears across the street, advertising lemonade for $1.00 a cup. Steve starts losing customers. In order to encourage customers to return, he changes the price of his lemonade to $.95. What law of supply and demand applies to Steve’s business? a. Price increased because supply decreased b. Price decreased because demand decreased c. Price increased because demand decreased d. Price decreased because supply inscreased

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Steve sells lemonade at the corner of a busy street. He charges $1.50 for a cup and easily sells 200...
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