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Economic theory says that in a shortage, the price of a good will increase. During the recent COVID-19 induced toilet paper shortage, many stores chose
Economic theory says that in a shortage, the price of a good will increase. During the recent COVID-19 induced toilet paper shortage, many stores chose not to raise prices but rather imposed purchase limits on how many rolls of toilet paper consumers could buy. Why might the stores have chosen this policy? Should they have simply raised their prices?
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