ECO2023 Chapter 3 Discussion Questions Prompt: Suppose a consumer values an energy drink at $2.50 each. Additionally, suppose that this consumer also goes to a supplement store with $2.50 and sees that the price of an energy drink is $2.50 after tax is considered. a) Given the scenario from the prompt & the definition of demand, does this consumer currently demand an energy drink? Why or why not? (33pts) b) If the price on energy drinks decreased from $2.5 to $1.25 when the consumer arrives at the supplement store, then what will happen to energy drinks demanded by the consumer? Graphically, how would this change be modeled using demand curves? (33pts) c) If the consumer now has $5 after finding $2.5 along their way to the supplement store, then what will happen to energy drinks demand by the consumer assuming that the price of an energy drink stays constant at $2.5? Graphically, how would this change be modeled using demand curves? (34pts)

ECO2023 Chapter 3 Discussion Questions Prompt: Suppose a consumer values an energy drink at $2.50 each. Additionally, suppose that this consumer also goes to a supplement store with $2.50 and sees that the price of an energy drink is $2.50 after tax is considered. a) Given the scenario from the prompt & the definition of demand, does this consumer currently demand an energy drink? Why or why not? (33pts) b) If the price on energy drinks decreased from $2.5 to $1.25 when the consumer arrives at the supplement store, then what will happen to energy drinks demanded by the consumer? Graphically, how would this change be modeled using demand curves? (33pts) c) If the consumer now has $5 after finding $2.5 along their way to the supplement store, then what will happen to energy drinks demand by the consumer assuming that the price of an energy drink stays constant at $2.5? Graphically, how would this change be modeled using demand curves? (34pts)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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