SIVSIV SAO – BUSINESS

Water Bottle Task (10 points)

20 03 2020

Ask five peers (or family members) are they willing to pay for this bottle. Mark number of Yes and No
for each price.

1. 0,5 cents

2. 1 dollar

3. 5 dollars

4. 10 dollars

5. 25 dollars

Price YES NO

0.5 cents 5/5 0

1 dollar 5/5 0

5 dollars 5/5 0
10 dollars 5/5 0

25 dollars 2/5 3/5

A) If you sell the bottle in school, what would be the optimal price? Explain.

If I see the bottle in school, I would probably go for 9.99$ per bottle. Why? Because our school
standard is high which mean most of the students or staffs there are willing or able to pay with that
price. Moreover, the design of this bottle is quite attractive and cool so with that price I think there
wouldn’t be any gossiping about the price.

B) Is the water bottle price elastic or inelastic? Explain.

For water bottle it’s price elastic, since it’s a want only not a must or a need. Therefore, if there’s
another water bottle with also a cool design and the price is the same or below, the customers of this
water bottle would most likely reconsider before buying this cute water bottle.