Question: Valentine’s Day is not only the most romantic day of the year but is also a big business day in some industries. Fifty percent of cut roses sold in February are sold on Valentine’s Day. On Valentine’s Day in a recent year, the price of a dozen roses jumped from $8.00 to $19.00 in a major metropolitan city. About 13 percent of the annual sales of candy take place on this holiday. Yet the price of a box of chocolates increases modestly if at all on this day. Use a supply-demand framework to explain the large increases in the price of roses but negligible change in the price of chocolates.

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