Answer to Question #125417 in Microeconomics for Sally

Question

In the last decade or so there has been a dramatic expansion of small retail convenience stores(such as Caltech,Total, Oilibya) although their prices are generally much higher than those in large supermarkets. What explains the success of the convenience stores?

Answer 1

As consumers, people are constantly forced to make choices.the theory of consumer behavior describes on how consumers use their income to maximize their utility.

Convenience stores have become more successful because they are located in conivinient areas and most people will prefer to shop from these stores even if the price is higher than that in the supermarkets because, they will save the time of going to supermarkets and getting what they need to satisfy their utility.

This is the main reason why most retail conivinient stores have been able to expand dramatically.