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The Price is Right!!

1. What appears to happen to the number of people willing to buy a cookie as the price goes up?
The number of people willing to buy a cookie goes down as the price goes up.
2. If it costs me $0.15 to make a cookie, would it make sense for me to charge $0.10? Why?
It wouldn't make sense for me to sell my cookies at $0.10 if it costs me $0.15 to make a cookie because I would lose $0.05 for each cookie I sold.
3. As a business what price would I like to sell my cookies at? Why?
I would like to sell my cookies at the highest price possible, in this case $1.00 because as a business I want to make as much money as possible.
4. Would it make sense for me to charge this price? Why?
It wouldn't make sense because very few people would pay this price for a cookie.
5. As a consumer, what price would I like to buy my cookies at? Why?
I like to buy at the lowest price possible, here it would by $0.10, because as a consumer I'm always looking for ways to spend as little as possible while getting the most possible.
6. According to the chart above, what price should I charge for my cookies and why?
Looking at the above chart and graph, as a business I should charge about $0.18 a cookie for that is where my supply and demand lines cross, so at that price the supply and demand will be equal meaning I will supply as many cookies and consumers will purchase, without there being any shortages or overstocks

7. Why do stores have sales?
Stores have sales for many reasons. Some include to attract more customers, to make customers think they are getting a better deal, to get rid of extra products they have, and to compete with the competition.
8. What kind of things would you buy in the summer?
In summer I would buy bathing suits, cold drinks, ice cream, sunscreen, tank tops, shorts, sprinklers, picnic supplies, and sandals.
9. What kind of things would you buy in the winter?
In winter I would buy thick coats, gloves, hats, hot drinks, sweaters, pants, boots, snow shovels, and blankets.
10. If it was winter, would I be interested in paying lots of money for a bathing suit (assuming I'm not going on vacation)? Why?
I wouldn't pay lots of money for a bathing suit because I wouldn't have a reason to use the bathing suit in winter. I'm not going to pay lots of money for something that I don't need at that point in time because that is wasting money.
11. If I wanted to start an ice cream business, when would be the best time of year to open my ice cream stand and why?
The best time of year to open my ice cream stand would be in summer when it's hot so that I would get lots of hot customers willing to pay for my cold ice cream.
12. Would the weather affect my ice cream business? How?
The weather would affect my ice cream business because if it rains there will be less people out and about and therefore less customers to buy my ice cream. Also, if it's cold outside, people wouldn't want something cold to eat, so they wouldn't purchase ice cream. On the other hand, if it got really hot, there would be many people wanting ice cream so I would have lots of customers.

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