Starbucks Company

LAW OF SUPPLY

a. If the company's product has many substitutes in the market, what happens to the elasticity of your product? If your company's product has few substitutes in the market, what happens to the elasticity of your product? If your company's product has no substitutes in the market, what happens to the elasticity of your product.

b. Use a numerical data of price and demand to show the price elasticity of your good.

c. Draw and show this effect of change in price on the demand for your company's product with the help of a demand curve.

d. Suppose your company produces a complementary good for its product? What happens to the supply of one complementary good if the price of other complementary good falls.?

e. Use a numerical table of prices and supply to explain. c. Is it called a change in supply or change in quantity supply? DEMAND & SUPPLY EQUILIBIRUM Scenario 5: a. Use a numerical table and show the demand and supply equilibrium for your product.

f. During COVID-19 what happened to the demand for your product? Draw the shift in the demand curve and show.

g. How will this change affect the equilibrium price and quantity of the good? Give reasons for your answers