
The fundamental Law of Demand: As the price of a good increases, the quantity demanded by consumers of that good will decrease, and vice versa. In layman's term, if something becomes more expensive, we buy less of it. By the same token, if something's price drops we will buy more of it. The second prong of this is a little bit harder to swallow on the margin for the following reason: If we are already buying a product (at the original price) then we have a demonstrated preference for that product, so then it stands to reason that if the price drops and we can buy more of that product we like for the same price, we will. However, if we do not already have a preference for a product, why would a price drop cause us to buy any at all? If you are a vegetarian and the price of chicken drops, are you gonna buy any? No. But if you normally are a red meat eater and the price of chicken drops, you probably will. In fact, if you don't have a preference against chicken, like a a vegetarian does, than you might substitute into it when the price drops. This is because many goods are comparable to each other, called substitutes, and when prices drop we find time to try out new, cheaper goods.
Let's start off on the alcoholic examples; assume that you have 10 dollars to spend on alcohol each weekend. The choices of alcohol are endless, you could buy a fifth of seagram's vodka, you could buy a six pack of Franzikaner, or you could buy 1/80th of a bottle of thirty year old scotch.

VS

Your choice will depend on how many people you are entertaining, how much you want to remember tomorrow, how many trailers you have lived in, etc. Maybe one weekend you buy the Seagrams because its dirt cheap and it gets the job done, but as the night progresses and your stomach, throat and taste buds raise a rebellion, you end up promising yourself you will go for the good stuff next weekend. So friday rolls around again, you grip your 10 dollars tightly and buy six bottles of the glorious German beer (9.79 a six pack at BevMo). Its delicious, it goes wonderfully with your veal medallions, but even shared with just one other person this purchase barely leaves you buzzed. You find a sober sleep to the sounds of your dorm mates drunkenly frolicking and fornicating wafting through the paper thin walls. Perhaps this was not the perfect solution either. The next week is a living hell, you don't know what to choose. Your cannot focus in your classes, your grades slip, your girlfriend leaves you, you start listening to Linkin park. You walk into the liquor store on Friday looking for salvation, when you see the glistening Franzikaner display front and center. But what is this? $11.99? The price has gone up because of strikes in the German barley mines? Fantastic! The relief comes in waves, the decision is made for you, you shake the invisible hand and buy your gasoline flavored libation.
This is the first part of the fundamental law of demand. The second generally works the same way. If the Franzikaner had dropped to $4.99 you would have bought two and had the best of both worlds. But what if there was another option, lets say a wine this time, that has historically cost $15. Let us use the example of Acacia Carneros Chardonnay:
It costs $15.99 on BevMo, where one Jack S. of San Francisco reviews it a "Delicious. Buttery, good acid." Is this not an appropriate choice for our college student? It could become a dorm favorite, BUT it has never even made it onto the radar because it is above our budget line. Could a drop in the price of this wine change our representative consumer's quantity demanded? Note this is at a critical point on the demand curve, i.e. moving from a quantity demanded of 0 to a quantity demanded of 1. If our student had never heard of this product, if it never has been a part of his preferences, would a price drop cause him to buy Acacia? Conventional economics says yes, and we can reasonably imagine that our addled, frustrated student might walk into the liquor store that Friday night disillusioned both by the cheap vodka and the expensive beer only to see that this higher quality chardonnay his mother sometimes drinks is on sale for--what else?--$9.99? He might see it as an answer to his prayers, he might just see it as a pressure-relieving third option, but it is imaginable he might give it a try. (Not to mention the fact that it is on sale makes him think he is getting a better product for a lesser price--This has to do with Behavioral economics and will likely be discussed in other posts) Thus the wine has garnered a new market simply by dropping its price.
Time to move out of the hypothetical and on to the title spirit of this post: Svedka Clementine. Svedka is a chique vodka distilled in Sweden and sold by disconcerting sexbots in urban bus stations.

Creepy. But anyway, while Svedka is not the most expensive vodka it is rarely within a college students budget and is not what one generally sees at a fraternity party or any small undergraduate party for that matter. Nonetheless, one recent weekend at my own college campus I was walking around a dorm building when a severely intoxicated girl burst out of her room, shaking her cellphone and trying to keep her eyes open all while singing "Call Me Maybe". This was not an unusual occurrence, but what was unusual was that when I returned her to her room and the other six intoxicated youths within, there upon the dresser was an empty 1.75L bottle of Svedka Clementine. These were students at a private college so I did not think much of it until I got back to my own dorm room where my roommate had just made the ubiquitous liquor store run himself (this was, of course, a Friday). My eyes widened as he produced from the brown paper bag the same handle of Svedka Clemetine that I saw in the bacchanalial dorm I had come from. The conversation ensued something like the following:
Me: Dude, this is awesome, but you always say you hate vodka.
Roommate: Yeah, my brother got it, but it looks good.
Me: Did he say it was on sale?
Roommate: Yeah, how did you know?
As the night carried on, I saw the same bottle again at a party organized by a fraternity. When I tell this story to friends from other schools many of them claim to have been surprised by the same bottles around the same time of year, even at schools on opposite sides of the country. The small price drop of the flavored vodka caused college students across the country to buy it. Quantity demanded that week must have flown up the axis. This is anecdotal evidence obviously, but I think it goes a long way to show how easily manipulated we are by prices, and how the fundamental law of demand still carries some weight in an age when we are deeply questioning the fundamental assumptions and frameworks of classical economics.