The Effects of Competition on Price
Imagine it’s the summer, and you’re sitting cozily in your lawn chair on the side of Main Street in your hometown, watching the Fourth of July parade. You are with your family, the sky is blue and the sun is hot, assembling all the necessary ingredients for a perfect holiday. Although thoroughly amused at the colorful floats passing by and marching bands playing patriotic tunes, you begin to get thirsty. For whatever reason, there are no stores nearby and you have forgotten to bring any water.