A friend complains that a 20-ounce bottle of Pambula Springs water costs \($5\) to purchase during a concert at a local sports arena, yet an identical bottle of Pambula Springs costs only \($2\) to purchase at a convenience store down the street from the arena building. You have seen that same brand and size of bottled water for sale in the supermarket, bundled into cases of 24 bottles that sell for $8.99.

Questions

1. Does this scenario concern a good or a service? How does your answer relate to each of the three locations mentioned?

2. Estimate the dollar value of the value-added that the convenience store provides but the supermarket doesn't, based on the per bottle prices at these two locations. What accounts for this difference in value? What is the convenience store providing that the supermarket is not?

3. Now estimate the dollar value of the value-added that the seller at the local sports arena provides but the convenience store doesn't, based on the per bottle prices at these two locations. What accounts for this difference in value, the subject of your friend's complaint? What is the seller at the local sports arena providing that the convenience store is not?