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Adjusts the price according to the weather

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Reference no: EM132032914

News announcement: "Coca-Cola has developed a soft-drink vending machine that adjusts the price according to the weather. Price rises during warm weather and decreases during cooler weather."

Think of a Coke machine in terms of market economics, that is, as having demand and supply. (You may find it helpful to illustrate for yourself.) Assume the supply curve is vertical to reflect that the machine gets refilled on some frequency, such as weekly. (In other words, price does not affect quantity supplied.)

Which core (basic) economic question is being resolved by price increasing in hot weather in soda machines?

Reference no: EM132032914

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