Question

5) The price of coffee beans rises on the international market by 5%. Because of its higher raw material costs, The Highland Creek Coffee Shop ( a local coffe shop located about a mile from UTSC) raises the price of its regular sized coffee by 5%. The Mom and Pop Coffee Shop at the corner of Kingston Road and Morningside also raises its prices by 5.% Ed's Shed, a coffee shop on Ellesmere, raises its prices by 4%. At the same time, Starbucks raises the price of its coffee at all 400+ of its Canadian locations by 10%. This kind of pricing decisions would suggest that the market for coffee in Eastern Toronto, and the GTA is: a) b) c) perfectly competitive a monopoly an oligopoly monopolistic competition d)