Assignment Interview five family members or friends. Ask them how many energy drinks they would buy in a seven-day week at these
prices: .25, .75, $1.25, $1.75, $2.00. Make a table to record the quantities of energy drinks they would purchase at each price. Give at least two reasons why you think the price of a product might vary. Give at least two reasons why a consumer might buy more or less of something depending on the price. Write two paragraphs discussing the relationships between price and demand and supply and demand. Ask at least five people of varied ages the following questions: Do you believe the economy is in dire straits? Why or why not? What do you see as the outcome of the current downturn? How are you directly affected, and what worries you about the state of the economy? Do you believe it can be fixed? If so, how? Assignment Guidelines: Complete both activities in their entirety. Be sure your interviews and analyses are complete and written in well-constructed paragraphs. Your final analysis should be one to two pages in length. Submission Requirements: table interviews analyses When submitting written assignments, please: Submit the assignment question(s) with your responses. Proofread for spelling, grammar, and punctuation. Use complete sentence structure. Make sure paragraphs have at least six sentences.
2 answers:
Answer: There is a positive relationship between price and quantity demanded. Other answers are given below.
Explanation:
• The price of a product might vary as a result of the increase or decrease in sales tax and also increase or decrease in production cost.
• The reasons why a consumer might buy more or less of a product as a result of its price are income and availability of substitutes. The income of a consumer has an impact on what an individual buys. Price has a negative relationship with quantity demanded, as price increases, quantity demanded decrease. Hence, when price increases, low income earners might move to a cheaper alternative.
Also, availability of substitutes plays a part. For example, if there's an increase in the price of pepsi, people might be tempted to move to coke if there's no price change for coke.
• There's a negative relationship between price and demand and a positive relationship between price and supply. The higher the price, the higher the supply of goods producers will like to supply while consumers will reduce their demand for a product once price increases.
• I think the economy is not in dire state. There has been an increase in employment, increase in consumption and GDP as well. The economy might not be up there yet, but we are doing well.
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