Do you like Starbucks? How much do you spend on Starbucks per year? Many of us go starbucks 6-8 times a month and spend more then we would ever think just on getting Starbucks, Would you go to another Coffee store if there is a new one opening, the answer will probably be no for most of people. Why do we like Starbucks so much even though the price of it isn't cheap?
We know that the Law of Demand proved that the price and quantity have inverse relationship:when price goes up ,the quantity goes down,when price goes down, the quantity should go up. It might not be the case for Starbucks, although coffee is not inelastic production.It is hard for a different store to have the same popularity as Starbucks.
Starbucks is been around for more then 40 years, everyone knows it,and we can find a starbucks almost everywhere we go. It is convenient, and when we say coffee,most of us would think of Starbucks. But if people just don't like coffee or Starbucks, it wouldn't matter whether there is a new coffee or not!