Deena operates a coffee shop located near the university campus. Her major competitor is Kaprice's Coffee on the corner across the street from Deena's Café. Recently, Deena decided to raise the price of all the products she sells. Since they are close competitors with Deena's Café, Kaprice's can most likely experience:
A) an increase in sales.
B) a decrease in sales.
C) an operating loss.
D) an operating profit.

Question

Quizplus · Accepted Answer

When Deena raises her prices, some customers may find Kaprice's Coffee more attractive due to lower prices, potentially leading to an increase in sales for Kaprice's.

Deena Operates a Coffee Shop Located near the University Campus