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Tom was a shopkeeper. He had a small corner shop. It was open from seven in the morning until eleven at night and sold many different things. Tom worked hard in his shop but he had a good business and he was happy.
Then a supermarket opened across the street. The supermarket was ten times the size of Tom's shop.
The manager of the supermarket wanted to take people away from Tom. He found out what Tom's prices were and then made his lower than Tom's.
People quickly stopped buying things from Tom's shop. They bought everything from the supermarket instead. Soon Tom's business was very bad and he was angry.
"It's not fair," Tom thought, "I must do something to teach that supermarket manager lesson."
The price of steak in the supermarket was $5.00 a pound. Tom put a sign in his window, Steak-$ 4.50 a pound.
The next day the price of steak in the supermarket was S 4.25 a pound, Tom changed the sign in his window. "Steak-$4.00 a pound."
An hour later, the sign in the supermarket said, "Steak-$ 3.75 a pound." Ten minutes later the sign in Tom's window said, "Steak-$ 3.50 a pound." Five minutes later the sign in the supermarket said, "Steak-$2.50 a pound." Twenty seconds later the sign in Tom s window said, "Steak-$1.00 a pound."
The manager of the supermarket ran across the road into Tom's shop. "This price cutting must stop," he said, "Steak is costing me $4. 00 a pound. I'm selling it at $2.50 a pound. I'm losing money every minute!"
"I'll stop cutting all my prices," Tom said, "if you stop cutting all yours".
The supermarket manager agreed, and the two men shook hands.
Tom smiled. He had not lost any money on the steak. He didn't sell steak at all.
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