Question

If an 8 oz coffee costs $1.00 and a 12 oz coffee costs $1.25, would consumers buy a 16 oz coffee at $1.60?

Answer 1

If the purchase were based strictly on price per ounce,
the `16` oz. for `$1.60` is cheaper per ounce and therefore would be purchased.

Explanation:

In reality there are many factors beyond the price per ounce.

Some customers would probably buy a 16 oz. cup even if it were $2.00; others would not buy a 16 oz. cup even if it were the same price as the 12 oz. cup.