Several businesses on campus - including Starbucks in the library, Einstein Brothers in the Morgan University Center,
Question:
Several businesses on campus - including Starbucks in the library, Einstein Brothers in the Morgan University Center, and Elements Caf in the Sunquist Building -- sell a cup of coffee. There are probably other locations where you can buy coffee. Prices differ between the businesses. Each coffee seller is separated from the other sellers by location and consumer preference. However, each business is theoretically in competition with the other coffee sellers on campus. After all, it is but a short walk between any of the locations.
Each of these sellers will sell one cup of coffee for the price advertised on their sign. We can assume that each seller has a theoretical maximum number of cups of coffee they can sell in a single day given their equipment, staffing, coffee supplies, season and other constraints. We can also assume that only a certain number of people can be served at any one location on campus given the above constraints. By any chance, is this theoretical maximum number of cups reached by any one of the businesses?
Name five changes of existing conditions that might expand or contract the number of cups of coffee that could be sold on campus? Would these changing conditions automatically change the price? Would these changes constitute movement along a supply curve or a change in supply?
Demand for coffee is made up of the student population, faculty members, staff members, and visitors. Would more cups of coffee be sold if the prices were less? Would fewer cups of coffee be sold if prices for all coffee vendors increased? Assuming the price for coffee went down, and more cups were sold; would this be a change in demand or movement along the demand curve? Would it be a change in demand or movement along the demand curve if fewer cups were sold based on higher prices?
Name five changes in the APSU coffee market that would change demand. Would a change in demand automatically cause a change in price?
Expert Answer:
Here are the responses to your questions 1 Changes in existing conditions that might expand or contract the number of cups of coffee sold on campus Ch... View the full answer
