Jason Lee
Mrs Schaffer
Econ
2012/11/05
Starbucks vs Folgers
In my situation I have never tried Folgers coffee therefor I would not have a demand curve for Folgers coffee. By looking at the price at Walmart Folgers coffee appears to be more affordable then Starbucks coffee. Now just by looking at the prices, for a average person it seems to be more likely to purchase Folgers coffee rather than Starbucks due to the price. But when your income rises, buying Starbucks coffee doesn't affect as much as before then demand for Starbucks would increase. When buying Starbucks coffee is same as buying Folgers coffee, the demand for Folgers will decrease. In this case the inferior goods would be Folgers coffee and the normal goods would be Starbucks coffee. When your income did not increase, you will purchase Folgers coffee because it is more afforded. Starbucks on the other hand would be to expensive to purchase on a daily basic. Therefor the demand curve for Folgers coffee decreases when your income rises because it is not a issue to purchase the better coffee. On the other hand the demand curve for Starbucks will increase. Remember that this outcome accounts only price, other determent-ant such as taste would also affect the demand curve.
Starbucks vs Folgers
In my situation I have never tried Folgers coffee therefor I would not have a demand curve for Folgers coffee. By looking at the price at Walmart Folgers coffee appears to be more affordable then Starbucks coffee. Now just by looking at the prices, for a average person it seems to be more likely to purchase Folgers coffee rather than Starbucks due to the price. But when your income rises, buying Starbucks coffee doesn't affect as much as before then demand for Starbucks would increase. When buying Starbucks coffee is same as buying Folgers coffee, the demand for Folgers will decrease. In this case the inferior goods would be Folgers coffee and the normal goods would be Starbucks coffee. When your income did not increase, you will purchase Folgers coffee because it is more afforded. Starbucks on the other hand would be to expensive to purchase on a daily basic. Therefor the demand curve for Folgers coffee decreases when your income rises because it is not a issue to purchase the better coffee. On the other hand the demand curve for Starbucks will increase. Remember that this outcome accounts only price, other determent-ant such as taste would also affect the demand curve.
No comments:
Post a Comment