1. Read the article, "The Mystery of the Market Price," in the Learning Resources before beginning these questions:
   • Is the end of the sixth paragraph an example of short-run pricing or long-run pricing? That is, by charging higher prices, should this restaurant expect other restaurants to enter immediately (say this lobster season)?
   • Why do we observe the ratchet effect?
   • Is the last paragraph ("There's a little reason to fear losing customers...") an example of long-term pricing? Why?

• Article: http://www.slate.com/articles/business/moneybox/2012/08/lobster_prices_are_collapsing_but_market_price_lobster_meals_aren_t_getting_any_cheaper_.html