Question

Suppose that when the price of a 16 oz. to-go cup of gourmet coffee is $4.25, students purchase 750 cups per day. if the price decreases to $3.75 per cup, which of the following is the most likely outcome?

Answer 1

The outcome that is expected is that the students would purchase more than 750 cups per day. This is a good selling strategy because it raises the belief that they are buying more and it is cheaper. The result is that the business will have better outcomes and the incomes will increase. Not to mention that the clients will prefer same quality of cofee for a "cheaper" price.