Examining Economic Enigmas Enigma

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Examining Economic EnigmasEnigma a puzzling
problem or mystery

• ES Explicitly assess information and draw
  conclusions

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1 - Why do people pay for bottled water when it
is so much more expensive than tap water?

• Why do people choose bottled water?
• What are the BENEFITS and how do they outweigh
  the COSTS?
• What are incentives for buying water?
• Do consumers still want bottled water, or have
  people switched to filter and Sigg bottles?
• Do consumers consider the environmental impact of
  plastic water bottles, even if they are recycled?

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2 Why are there so many Starbucks so close
together?

• - Why do people choose Starbucks?
• - Why are the stores profitable?
• - What is the incentive to having so many stores
  in so many locations?
• - How does Starbucks decide when/where to open a
  new store?
• - How far would people drive for Starbucks?
  Would they pass a Wawa and Dunkin to purchase the
  more expensive coffee?

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Bottled Water

• People Choose Consumers are willing to pay more
  for clean water
• All Choices involve Costs the benefits of
  clean/healthy water outweigh costs
• People respond to incentives its is portable
  and healthy unlike soda/juice
• Economic Systems - X
• Voluntary Trade Creates Wealth Consumers
  continue to buy it!
• Consequences of Choices Lie in Future
  environmental impact of the bottle

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Starbucks-http//www.youtube.com/watch?vwfHpU2DM
NOU

• People Choose People like the taste of
  Starbucks coffee their specialty drinks
• Ex Chestnut Praline Latte
• All Choices involve Costs So many different
  people of all ages buy Starbucks the benefits
  outweigh costs
• People respond to incentives Time savings and
  product consistency are major incentives!
• Economic Systems Starbucks adds one store at a
  time in response to demand
• Voluntary Trade Creates Wealth Consumers want
  convenient locations to purchase coffee

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Now think of your own Enigma!

• Why dont more people carpool? (Third data sheet
  in folder)
• Why do people pay to have their bags checked at
  the airport?
• Why do people boy the new iphone 6 when their
  phone still works?
• Why do people buy video games/movie when they can
  rent them?
• Why do people buy items in store when they can
  get them cheaper on-line?