None ECO2023 Chapter 3 Discussion QuestionsPrompt: Suppose a consumer values an energy drink at $2.50 each. Additionally, suppose that this consumer alsogoes to a supplement store with $2.50 and sees that the price of an energy drink is $2.50 after tax is considered.a) Given the scenario from the prompt & the definition of demand, does this consumer currently demand anenergy drink? Why or why not? (33pts)b) If the price on energy drinks decreased from $2.5 to $1.25 when the consumer arrives at the supplementstore, then what will happen to energy drinks demanded by the consumer? Graphically, how would this changebe modeled using demand curves? (33pts)c) If the consumer now has $5 after finding $2.5 along their way to the supplement store, then what will happento energy drinks demand by the consumer assuming that the price of an energy drink stays constant at $2.5?Graphically, how would this change be modeled using demand curves? (34pts)

Part 2: ExplanationStep 1: Identify the value the consumer places on the energy drink ($2.50) and…

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Exploring Economics

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Chapter6: Elasticities

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