On Friday, Jimmy John's cut their sub prices from about $5 to $1 from 11am - 3pm. Theory suggests that a price drop below equilibrium will cause the quantity demand to rise above the quantity supplied. In other words, there will be a shortage. Well, Jimmy John's didn't run out of subs since this was a planned event, but you tell me if quantity demanded didn't rise (click on the thumbnails).
One question: did the price of a sub really fall?Ash Morgan