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Problem 19 Easy Difficulty

Sketch the graph of the amount of a particular brand of coffee sold by a store as a function of the price of the coffee.


As the price increases, the amount sold decreases.

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Mitchard G.

March 8, 2021

Can you really answer this question without knowing the market? Isn't the graph very different when supply is limited? Won't that be non-linear?

Video Transcript

all right, so there could be a lot of different factors that go into how much coffee is sold other than just the price. But in general, if we just break it down to, uh, general economics here, if you lower the price of something, you're probably going to sell more. And if you increase the price of something, you might sell less. And so as we see the price increase along the X axis, we're going to see the amount sold decrease. So perhaps it looks like this. We don't know if it's a curve. We don't know if it's a line. We don't know if it's a curve going the other way necessarily, but it could be one of those three or some combination of curvy nous.