ETH 557 Week 2 Individual Assignment Essay Assignment
ETH 557 Week 2 Individual Assignment Essay Assignment
Research the elasticity of beef and eggs in regards to price changes. How do supply, demand, and price controls interact to affect equilibrium price of eggs? Why do customers have a more elastic buying response to beef than to eggs?
What would be the consumer buying response to Coca-Cola® if the price of Pepsi® doubled? If the prices of Coca-Cola® and Pepsi® remained constant, what would be the consumer’s typical buying response to these products if their income was reduced by 30%? Suppose all carbonated beverages tripled in price. How would the concepts of utility, income, and substitution predict consumer behavior based on the rise in the cost of carbonated beverages?
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