Can some experts help me out on this question. Please read instruction carefully
ID: 1151868 • Letter: C
Question
Can some experts help me out on this question. Please read instruction carefully and answer the question? Thank you for yuour help in advance.
Substitute Products The availability of substitutes is an important influence on the elasticity of demand. Assignment: Visit a retail outlet(s) and select substitutes for the three different scenarios described below and give the price for each. Be sure at least one item in each pair is a product you purchase, so you will understand why the products are substitutes, and why someone would choose one over the other, given the price difference. Note: The examples are all beverages, please do NOT use beverages as your products, we want to see your creativity here! (They do not have to be grocery items.) Scenario #1: Select two products that are very similar in composition, but differ in brand or taste (ie Pepsi vs. Coke; Folgers vs. Colombian) Item Unit Price Product #1 Product #2 Price Difference: Scenario #2:Explanation / Answer
Scenario 1
Scenario 2
Scenario 3
(Note that all the prices are being referred from "Amazon" online store )
As per the given scenarios the tables have been made and the prices of each of the good written
I take scenario 3 for the explanation part
Oatmeal of different brands is taken and the price recorded .
The first product ie cap and crunch breakfast cereal weighs the same as product 2 but it should be noted that this particular product has 4 varieties of the cereal ie peanut butter , original etc
while the second product has only one variety and so the difference in weights
These are substitute goods or not depends on various factors
habit of an individual : if the person is habitual of having Cap and crunch's brand of oatmeal then probably he would not switch to the other brand even if it means to pay high prices or the prices of it rise
This product is a breakfast product , something which is consumed daily . so the person would have a good proportion of his income devoted to it . If the person is well off then consuming teh higher price product could be done , otherwise preferences change.
I would prefer the Cap and crunch oatmeal given that it has variety of flavours . If the price difference isnt much and I am habitual of having a choice for breakfast(different flavours), then I will continue to consume product 1
But if the price of cap and crunch drastically shoots up , ie almost doubles the original price then i might switch to other substitue ie product 2 inj this case or even make a market survey on availability of more options , so that the price increase does not hurt my budget.
Item unit price product 1 Colgate toothpaste 3 $11.29 product 2 Sensodyne toothpaste 3 $16.47 Difference $5.18