Price Elasticity of Demand of Three Drinks

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Aims and Objectives
The main aim of this project is to: * To determine the demand of three (3) different drinks, Coca Cola, Orchard and Sprite, as prices fluctuate. * To determine if the theory of price elasticity of demand is applicable to the demand of Coca Cola, Orchard and Sprite. * To determine the Price Elasticity of Demand of each of the three (3) different drinks; Coca Cola, Orchard and Sprite. * To investigate how revenues change as the prices of Coca Cola, Orchard and Sprite change.

Methodology The class decided that the Price Elasticity of Demand for three drinks were to be found. The three drinks were: Coca Cola, Orchard and Sprite. I then chose to investigate whether price elasticity of demand is
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The data collected was placed into the following table which was used to plot the graph below it.
Table 1 showing the demand of Coca Cola at prices ranging from $3.00 to $6.00

Graph 1 showing the demand for Coca Cola as price changes

CALCULATING PRICE ELASTICITY OF DEMAND-COCA COLA
Calculating price elasticity of demand when the price of Coca Cola increases from the original of $5.00 to $6.00 and the quantity demanded falls from 37 to 27.
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PED=Percentage change in quantity demanded of the good Percentage change in price of the good
Percentage change in quantity demanded of Coca Cola =-1037×1001~ -27.03%
Percentage change in the price of Coca Cola = +15×1001= +20%
PED=-27.03%+20%~ -1.35
PED= -1.35, this is greater than 1, therefore PED is elastic

Calculating price elasticity of demand when the price of Coca Cola decreases from the original of $5.00 to $4.00 and the quantity demanded rises from 37 to 54.
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PED=Percentage change in quantity demanded of the good Percentage change in price of the good
Percentage change in quantity demanded of

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