The Snicker Effect

The Snicker Effect - Appendix A Market Demand Experiment...

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Appendix A: Market Demand Experiment Instructions Situation 1 You are a consumer of goods for sale in our classroom "store". You have a total income of $5 to spend on goods. You may buy any number of the products that you desire (as long as you spend only $5) and you certainly don’t have to purchase all of the products, but you must spend all of your income. The prices of the products for sale are listed below. Write down the number of each product you decide to buy next to the product price in the "Individual Quantities" column (the "Market Quantities" column will be dealt with later). Individual Quantities Market Quantities Can of Coke =$1 Chocolate Bar =$1 ______ Trail Mix =$1 Carton of Milk =$1 Situation 2- "A New Day" Due to a cocoa bean production catastrophe the price of Chocolate Bars increases to $2, and all of the other product prices remain unchanged. Once again write down the number of each product you decide to buy next to the product price (below) allowing only for the change in the price of Snickers Bars, your income is still $5. Individual Quantities Market Quantities Can of Coke =$1 ____ Chocolate Bar =$2 _________ Trail Mix =$1 Carton of Milk =$1 Situation 3 - "Another New Day"
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The cocoa bean production catastrophe gets all straightened out (i.e., the price of Chocolate Bars decreases to its
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The Snicker Effect - Appendix A Market Demand Experiment...

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