1. The price of roses increases significantly on Valentine's Day compared to other days due to high demand. This can be considered an example of positive price elasticity, where the higher price may encourage more purchases as a demonstration of love. 2. Some customers are willing to pay more on Valentine's Day to distinguish themselves, known as the Veblen effect. The high demand also creates a signal of scarcity that pushes prices up. 3. Flower sellers justify higher prices by increased costs of doing business on Valentine's Day when demand is highest. However, the real value appears to be based more on marketing than actual production costs.