John and Steve Are Roommates at Siberian University

question 16

Essay

John and Steve are roommates at Siberian University. They are planning to have a party this coming weekend and need to go shopping for snacks. They know all of their friends like nacho cheese flavored tortilla chips, so that is the only type of snack they plan to buy. After pooling their cash, they take $18 and head out to the nearest grocery store. Walking down the chip aisle, they fill their cart with 6 bags of Tostada brand chips at $3 per 14-ounce bag. Continuing down the chip aisle, they see Durango brand chips are available at $2 per 14-ounce bag, so they put all of the Tostada chips back and instead purchase 9 bags of Durango chips. Is John and Steve's behavior consistent with "the law of demand"? Explain. (Extra Credit: If they hadn't changed their minds, would they have violated the law of demand?)

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Definitions:

Cure the Delivery

The process of rectifying any issues or defects present in the delivery of goods under a contract, thereby fulfilling the delivery obligations fully and properly.

Tender

An offer to perform an obligation or a bid to buy securities, goods, or services at a specific price.

Tender of Payment

The presentation of money or a means of payment to fulfill a debt or obligation, usually in the exact amount owed.

Conforming Goods

Goods that meet the specifications and standards outlined in a sales contract.