Related to the Economics in Practice on page 203: Licenses to sell hot dogs in New York City's Central Park are considerably higher than the licenses to sell hot dogs in the rest of the city. Which of the following statements regarding the above information is true?
A) Despite this, hot dogs are less expensive in New York's Central Park than in the rest of the city.
B) Despite this, hot dogs sell for the same price in New York's Central Park as they do in the rest of the city because the hot dog market is perfectly competitive.
C) Despite this, hot dogs sell for the same price in New York's Central Park as they do in the rest of the city because the city regulates the price of hot dogs.
D) Due to this, hot dogs are more expensive in New York's Central Park than in the rest of the city.

Question

Quizplus · Accepted Answer

The higher cost of licenses in Central Park likely leads to higher prices for hot dogs there, as vendors need to cover their increased costs.

Related to the Economics in Practice on Page 203: Licenses