Answer the question using complete sentences.

Imagine you are taking a weekend trip to see your favorite NFL team play. When the game begins, you decide you would like a soda. Going to the nearby vendor, you find a large Coke is $6.50. The extremity of this price surprises you at first, until you remember the law of supply and demand learned in your business course. Describe how supply and demand plays into the price of the Coke.

1 answer

The price of the large Coke at the game is influenced by the law of supply and demand. During sporting events, the demand for food and beverages, including soda, is typically high because many fans want to enjoy snacks while watching the game. This high demand allows vendors to charge more for their products, as consumers are willing to pay a premium for the convenience of obtaining refreshments at the venue.

On the supply side, the number of vendors at the game may be limited, which further constrains the availability of options for sodas. With limited supply and increased demand, prices tend to rise. In this case, the $6.50 price for a large Coke reflects the intersection of these supply and demand dynamics, as vendors capitalize on the opportunity to make higher profits during live events where attendees are eager to purchase refreshments.