The Price Of Frozen Yogurt

2007 WordsJul 26, 20159 Pages
This graph says that many people believe that the price of frozen yogurt at YoYo Yogurt is overpriced. 90.9% of people we surveyed believe that the price of $2.60 per 100g is too expensive for the quantity and quality which they received. This means that only 9.1% of the people we surveyed thought that YoYo Yogurts had appropriate prices for frozen yogurt. This graph shows us that as the prices are quite expensive that people may not go back to the establishment as the opportunity cost of having frozen yogurt is relatively large. This graph would show that if YoYo Yogurt wanted to keep its high amount of customers they would have to lower the prices, for example 150g for $2.60 or 100g for $2.00. The past two graphs are used to assess the demand for frozen yogurt for both Wendys and YoYo Yogurt. As Wendys and YoYo Yogurt have different prices the graphs had to have slightly different prices up the X axis. The demand for both of these establishments follow the law of demand, the law of demand is as prices increase the quantity demanded decreases assuming Ceteris Paribus, vice versa. On the YoYo Yogurt demand curve the quantity demanded changes between 56 and 256 with the price ranging from $1.50 to $3.00, going up in 50c intervals. On the Wendys graph the quantity demanded changes from 25 to 106 and the price changes from $4.00 to $6.00, increasing in 50c intervals. Using these graphs we can see that YoYo Yogurt have a higher average amount consumed ranging from an average
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