Looking to increase the profits of his lemonade stand, Johann doubled the price of a cup of lemonade from 25 cents to 50 cents. This clearly shows Johann's lack of business sense, for now he'll almost certainly sell fewer cups at the new price and therefore make less money than before. The argument above assumes that 1. Johann is looking to double the profits of his lemonade stand2. the price increase will likely put Johann out of business3. profits from the price increase will not offset the money lost when fewer cups are sold4. even if Johann sells more cups at the new price than he did at the old price, he'll still lose money on the lemonade stand

Question

Paloma Hurley

Business

12 August, 15:30

Looking to increase the profits of his lemonade stand, Johann doubled the price of a cup of lemonade from 25 cents to 50 cents. This clearly shows Johann's lack of business sense, for now he'll almost certainly sell fewer cups at the new price and therefore make less money than before. The argument above assumes that 1. Johann is looking to double the profits of his lemonade stand2. the price increase will likely put Johann out of business3. profits from the price increase will not offset the money lost when fewer cups are sold4. even if Johann sells more cups at the new price than he did at the old price, he'll still lose money on the lemonade stand

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Answers (1)

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Niko Murphy · Answer 1

1. Johann is looking to double the profits of his lemonade stand

Explanation:

Note that Johann was still making money from lemonade stand but was not content with the profits he was making that was his argument or reason for increasing the price of a cup of lemonade from 25 cents to 50 cents.

Without having forsight Johann's decision eventually resulted in him selling fewer cups at the new price and therefore making less money than before.