Question

A.   Consumers are illogical because they are buying more Starbucks beverages in 2019 despite the fact that Starbucks has raised prices 10 to 30 cents per drink.

 

Answer 1

For consumer Starbucks beverages is a luxury good and consuming it make them more superior to others and when the price of a luxury good goes up it's demand increases as it make people believe to be more superior when it's price increases.