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Think of three goods or services that you buy frequently. Fill in the following details for each goods or service in the tabular template provided:
Think of three goods or services that you buy frequently. Fill in the following details for each goods or service in the tabular template provided:
- The current price and the quantity that you normally buy.
- A higher price than the current price and the quantity that you will buy at that price.
- A lower price than the current price and the quantity that you will buy at that price.
Item 1
Price | Quantity Bought |
Item 2
Price | Quantity Bought |
Item 3
Price | Quantity Bought |
Analysis
Now, consider the price, and the quantity that you are willing to purchase at that price and answer the following questions.
- How does price influence the quantity of an item you are willing or able to purchase?
- Does it make a difference if the item is an essential item, like food vs. a luxury item like a sports car whether you are likely to continue to purchase the item even if the price goes up?
- Consider what you can infer from your own purchasing habits about price and demand?Explain your answer.
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