Jason, a highminusschool student mows lawns for families in his neighborhood. The going rate is $12 for each lawnminusmowing service. Jason would like to charge $20 because he believes he has more experience mowing lawns than the many other teenagers who also offer the same service. If the market for lawn mowing services is perfectly competitive, what would happen if Jason raised his price? A. If Jason raises his price, he would lose all his customers. B. He would lose some but not all his customers. C. Initially, his customers might complain but over time they will come to accept the new rate. D. If Jason raises his price, then all others supplying the same service will also raise their prices.

Question

Business

Katelynn Carson

20 May, 04:40

Jason, a highminusschool student mows lawns for families in his neighborhood. The going rate is $12 for each lawnminusmowing service. Jason would like to charge $20 because he believes he has more experience mowing lawns than the many other teenagers who also offer the same service. If the market for lawn mowing services is perfectly competitive, what would happen if Jason raised his price? A. If Jason raises his price, he would lose all his customers. B. He would lose some but not all his customers. C. Initially, his customers might complain but over time they will come to accept the new rate. D. If Jason raises his price, then all others supplying the same service will also raise their prices.

+3

Answers (1)

Know the Answer?

Valerie Cross · Answer 1

B. He would lose some but not all his customers.

Explanation:

If the market for lawn mowing services is perfectly competitive and if Jason raised his price, he would lose some but not all his customers.