Cocco runs an ice cream parlor and in the vicinity, there is also a shake shop ran by Cocco’s arch-rival, Willy. With rising temperature, Willy thought it would be a perfect time for him to increase the price of a glass of shake. At this time Cocco’s friend Benji advised him to not follow the suit. Initially Cocco was skeptical of the suggestion made by Benji, but he also knew that Benji has Cocco’s best interest at heart, so he did what Banji advised. In a week only, Cocco started experiencing the gains from following Benji’s advice. What do you think is the economic reasoning behind the gains that Cocco is experiencing?

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There is an economic term Demand which means the total value of ... View the full answer