Does it make a difference if the item is an essential item, like food vs. a luxury item like a sports car whether you are likely to continue to purchase the item even if the price goes up? How does price influence the quantity of an item you are willing or able to purchase?

Consider the price, and the quantity that you are willing to purchase at that price and answer the following questions.

1. How does price influence the quantity of an item you are willing or able to purchase?

2. Does it make a difference if the item is an essential item, like food vs. a luxury item like a sports car whether you are likely to continue to purchase the item even if the price goes up?

3. Consider what you can infer from your own purchasing habits about price and demand? Explain your answer.