Suppose that three groceries sell Bubba's Gourmet Red Beans and Rice. Bullseye market is able to acquire, stock, and market them for $2.00 per package. OKMart can acquire, stock, and market them for $1.98 per package. SamsMart can acquire, stock, and market them for $1.96 per package. Suppose that each day, equal numbers of customers begin their shopping at each of the three stores. If the cost of going to a different store to purchase red beans and rice is two cents, where will customers purchase red beans and rice? Where will they not?
Consumers shop at both SamsMart and Bullseye, but not OKMart.
Consumers only shop at SamsMart, since it has the lowest price.
Consumers shop at both SamsMart and OKMart, but not Bullseye.
Consumers shop at all three stores, since the cost of going to a different store is equal to the difference in price of two cents.