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Jenny Sells Lemonade by the Street During the Summer Time

Question 36

Multiple Choice

Jenny sells lemonade by the street during the summer time.Several other kids also sell lemonade in Jenny's neighborhood.
Refer to the information above.Suppose that the first week of summer,Jenny charged 25 cents for an 8-ounce cup of lemonade,her next-door neighbor Sam charged 50 cents for an 8-ounce cup of lemonade,and Alex across the street charged 15 cents for an 8-ounce cup of lemonade.What is most likely to happen?


A) Everyone will start to charge 50 cents to maximize revenue.
B) A price war will break out,and all of the kids will gradually increase their prices.
C) Each kid will keep his or her price at the original amount,because they had chosen those prices to maximize profits.
D) Eventually prices will equalize at all three lemonade stands.

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