Wednesday, October 3, 2012

Demand Headlines, yo!

Complementary Demand: Gas prices triple; the demand of cars has "tanked" dramatically!

Substitute Demand: Farmer's strike; cost of crops "grows".

E L A S T I C Demand:The price of boats "sinks" and people "cruise" to the nearest motor boat shop.

Inelastic Demand:  Water bottle prices quadruple, a "tsunami" of people leave grocery stores with a "wet head".


Inelastic Demand:
    

http://www.golfzing.com/sites/default/files/specials/lg_ko_dasani_bottle.jpg
           Dasani water bottle prices have increased from $1.50 to $6.00 per bottle. The company has decided not to create an action plan to lower the cost. Water bottle prices quadruple, and this creates aggravation to consumers. Dasani refuses to participate in any kind of interview, despite our pleas and requests. According to a recent Dasani water bottle market analysis, prices are expected to lower, but over the course of five years. Since Dasani refuses to be interviewed, we decided to interview one of the company’s priority consumers, Jackson Waltz, a loyal customer said, “ I cannot believe Dasani would allow their prices to overinflate like this, although I will continue to purchase from them, I am not a satisfied customer at this point in time”.
Water is a necessity to surviving life. When we’re on the go, a bottle of water is much more convenient than trying to find the nearest water fountain. This is why Dasani water bottles are a good example of inelastic demand; they are one of the top sellers of bottled water in the country and people need water that is accessible whether they like it or not.
                This leads me to ask, why does someone feel the obligation to continue to purchase a product that could simply be replaced with an alternative product?
 

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