Chapter 10, Problem 22AA

To determine

To analyze: The interpretation of the diagram

Answer to Problem 22AA

The woman wanted to buy coffee.

Explanation of Solution

1. The woman wanted to buy coffee.
2. The shopkeeper gave the reason as high inventory costs for not selling coffee by the pound. He told her that he would require to keep a lot of inventory for it and it will consume a lot of his time while doing so.
3. Shop owner’s reaction implies that he is a new comer to the field of entrepreneurship. He has less knowledge about sale, how to interact with consumers and even does not really believe in progressing his business by making available a large variety of goods for the consumers.

Economics Concept Introduction

Introduction: Entrepreneurship is the ability to develop and run a business. Starting new businesses constitute for entrepreneurship.