Demand curve for a consumer for coffee, Microeconomics

Suppose the demand curve for a consumer for coffee is:

Q = 6 – 2P,

where Q represents the number of cups per day and P is the price of coffee per cup.  

Question: Suppose the consumer can choose either coffee shop 1 or coffee shop 2, but not both.

- Assuming that other things (such as location, quality of coffee, and so on) are the same, which coffee shop would the customer prefer? Will the difference in the average price per cup affect your choice between coffee shop 1 and 2? Explain your answer.    

- How, if at all, would your answer above change if coffee shop 2 provides unlimited cups of coffee for the price of $7.00 per day? Explain your answer.

 

Posted Date: 3/29/2013 2:59:22 AM | Location : United States







Related Discussions:- Demand curve for a consumer for coffee, Assignment Help, Ask Question on Demand curve for a consumer for coffee, Get Answer, Expert's Help, Demand curve for a consumer for coffee Discussions

Write discussion on Demand curve for a consumer for coffee
Your posts are moderated
Related Questions

What are the basic economic institutions? There are two fundamental economic institutions which have been so far used into the real world are as: a. Market economic institut


Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

1. What are externalities? Give an example of positive and negative externality and explain why the market outcomes are inefficient in the presence of externalities? 2. What are

Problem 1: i) Is Protectionism always beneficial? Discuss. ii) To what extent can a country actually rely on the principle of Comparative advantage before engaging in in

Why concept of Elasticity is important in economics?  Elasticity is very important concept in economics because it affects the decision of individuals as well as of the whole e

Demand Pull Inflation and Cost-Push Inflation: Demand Pull Inflation: It describes a sustained increase in the general price level that is caused by a permanent increase in n

illustration for demand of big macs using indifference curve and budget line

# 1 Question: Consider a competitive market for Berries. The market demand for the berries is Qd=50-P (Qd is the quantity demanded (cartons) and P is the price in $. The market sup