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CourseSmart - BookReader 1 of 1 2012-04-06 18:34 Where Prices Come From: The Interaction of Demand and Supply Chapter Outline and learning Objective s 3.1 The llernud Side of t bt M artel , page 66 Discuss 1he vanables tt'Ot lnftuen ce demard . 3.2 Tbe S.pp!y Sfdt ol the Marbt , page 7 4 Discuss 1he va nables tt'Ot lnftuence supply . 3.3 Market Eq"lllbftsm: Pilling Dema t d end Svppty Togetllt~ page 78 Use a graph to Illustrate mafl<et equlllbnum . 3.4 Tbe E l fect olllemaad and Suppty SlUts oa Eqaltlbrlvm , page 81 Use demand and supply graphs to predict changes In pnces and quant~les . CourseSmart - BookReader 1 of 1 2012-04-06 18:34 Red Bull and the Market for Energy Drinks Markets for some products s udd e nl y exp lod e. This was the case in recent years with energy drinks. Red B ull was developed in Austria by Dietrich Mateschitz, who based it on a drink he discovered being sold in pharmacies in Titailand. Red Bull entered the u.s. market in I 997. At that time, only a few energy drinks, such as jolt Cola, were available, and they made up only a sliver of th e soft drink mar- ket. By 2009, however, sales of energy drinks were growing by 10 percent per year, which was a rate faster than sales of other soft drinks, even though energy drinks sell for three times as much per ounce as soda. Ute market for energy drinks has found a particu- l arly valuable niche with students wanting an extra boost of energy whi le engaging in sports or studying. One report predicts that energy drinks might replace coffee for the current generation of teens and yotmg adults . The success of Red Bul~ Monster Energy, and Rockstar attracted the notice of th e large beverage firms, as well as entrepreneurs look- ing to introduce new products into a hot market . Coca-Cola signed an agreement to distribute Monster Energy in 20 u.s. states, Economics in ... View Full Document

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