The paper should be 6 pages long (including Title page, bibliography, graphs, tables etc.). It should be typed double-spaced in Times New Roman, font size 12 following the APA style with 1-inch margin on all sides. Don’t forget to include a title page at the beginning and a bibliography at the end of your paper. Discuss the issue in your paper as an economist.  

Topic: Shoppers Are Caught Off Guard as Prices Change More Often WSJ | By Charity L. Scott | February 4, 2022 Summary: More everyday items are being priced like airline tickets where sticker prices are changed within hours or days. Retailers say this is a reaction to changes in costs and continuing product shortages caused by the Covid-19 pandemic. The changes occur online as well as offline. Menu costs are costs firms incur when they change their prices. Menu costs may cause some prices to be “sticky.” In the article Brian Elliott, a partner at the management consulting firm McKinsey & Co. stated: “As a retailer, what I really care about is loyalty…If the customer feels ripped off, they’re not going to come back to my store.” Briefly explain why a market shortage may be allowed to persist because a retailer places a priority on maintaining the loyalty of its customers. Which would benefit consumers more: (a) a retailer allows a product shortage to persist, or (b) the retailer increases the price of a product to eliminate the shortage? Discuss how rising prices are hurting the consumers’ purse and cost of living