Private Consumption – Supply / Demand

  

List three (3) goods or services that you buy frequently.  Fill in the following details for each goods or service in the provided table:

A. The current price and the quantity that you normally buy.

B. A higher price than the current price and the quantity that you would buy at that price.

C. A lower price than the current price and the quantity that you would buy at that price.

Then respond to the three essay analysis questions in 2-3 paragraphs each.

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.

1.  How does price influence the quantity of an item you are willing or able to purchase?

2. 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?

3. Consider what you can infer from your own purchasing habits about price and demand? Explain your answer.

  

Length

2-3 paragraphs for each question.

 

Font

12 point Calibri font

 

Program/File Type

Submit in the downloadable Word   file

 

Attachments

Should be pasted into the Word   document if possible.

 

Referencing system

APA referencing system is   necessary in assignments, especially material copied from the Internet.

For   examples of correct citations, visit the following links:

http://owl.english.purdue.edu/owl/resource/560/01/