Mae's Country Kitchen sells out of her cinnamon rolls every morning before 8:30 a.m., and her later customers ask her to make more. The next day, Mae makes an additional two dozen cinnamon rolls and raises the price of an individual cinnamon roll by 50¢. She sells all but one of them. Mae has found the ________ price of her cinnamon rolls.

Question

Quizplus · Accepted Answer

Mae's customers are willing to buy all of her cinnamon rolls before 8:30 a.m. every day, indicating that there is high demand for her product at the current price. By raising the price and still selling out, Mae has discovered the market price, which is the price at which the quantity of her product demanded by consumers equals the quantity that she supplies.

Mae's Country Kitchen Sells Out of Her Cinnamon Rolls Every