Ice Cream Maker Substitute
Manufacturers are selling more ice cream containers in the smallest size again? An Economics Question?
This is a question Economics tasks I can not figure out. ice cream makers are selling ice cream for the same price but in smaller containers. On the basis of theories economic, these companies will sell more, less or the same amount of the smaller boxes than before? Why? Elasticity of demand> 1:. My attempt to answer the question Ice cream is a good stretch for which there are many substitutes. The unit price rose ice cream. Therefore, firms sell less ices as consumers seek alternatives that are less expensive than ice cream is per unit. Am I right?
You're absolutely right. The demand for ice cream not being a necessity and not a substitute for being is likely that more price elastic. But it can be difficult to say which will be significantly greater than one in all seasons and in all places and situations. Sometimes, consumers do not worry about the price when taking children away from them on vacation to the seashore in summer and would like to enjoy ice cream as a complementary element of consumption. Sometimes, people do not realize the smaller size of the ice cream containers. At times, some mothers would like to serve smaller portions of ice cream for children. And we can not be sure that ice cream substitutes remains constant price over a period general inflation. Notwithstanding these aberations small, has all the reason that ice cream sales should fall because the effective price per unit has been frozen increased.
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