3. Because the more an item is wanted, the price gets higher so the producer can make more money.

To show that at the lowest price there is the highest demand and at the highest price there is the lowest demand.

 

This demonstrates the private ownership principle of a market economy because the business owners are choosing how to price their products based on consumer patterns and supply with no input from the government.

 

People may prefer one over the other and therefore want more of it, or one might be healthier than the other and therefore crazy parents will buy that one.

Because as the price goes up the quantity demanded goes down because less people want to buy the product at the higher price.

 

When the price goes down the demand for the product goes up.

 

Because more people might want sport drinks vs. fruit juice.

Because as the price always has to be on y axis and the x axis has to be the quantity.  So if the quantity decreases when the price increases, then the slope will always go from the left down to the right.

Question 2:  What principle of a market economy does this behavior demonstrate?

This demonstrates the law of demand 

Question 3:  What are some reasons why demand might differ for the two products?

Demand might differ because people might value the products differently

Because as the price goes up the quantity demanded goes down because less oeople want to buy the product at the higher price.

 

When the price goes down the demand for the product goes up.

 

Because more people want sport drinks vs fruit juice.