I need to know that you understand the difference between Change in Demand vs. Change in Quantity Demanded.
1. If Coke and Pepsi are both priced at $1.00, and Coke raises it's price to $1.50 but the price of Pepsi remains unchanged, look at the charts below and explain what is happening to Price and Quantity for both products. In your answer, refer to the chart on the left as Chart A and the chart on the right as Chart B:
Fill in your Answer here: In chart A the price of the supply is high less of a demand there is for the product being sold, the change of demand increases as the price lowers. In Chart B there is not enough product to satisfy the consumers need, the change in quantity demanded increases.
2. Think of another example of 2 products where a Change in Quantity Demanded that would cause a Change in Demand for another product. Tell me what the products are, and why the Change in Quantity Demanded for product 1 would cause the Change in Demand for product 2:
Fill in your Answer here:
Two products that compete with each other for an example are Samsung phones and iPhone. IPhone is very popular phone throughout the world, the change in demand quantity has made it so their competition Samsung has to adjust their change in demand. Samsung has to lower their prices in order to sell more units compared to iPhone where they can keep their pricing the same and still cannot meet the consumers demand.
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