Assume that a retailer sells 1000 six packs of Pepsi per day at at $3./6pk.  You, as an economic analysis , estimate that the cross price elastcity  between pepsi and coca cola is 0.4.  If the retailer raises the price of coca cola by 10%, how would sales of pepsi be affected, ceteris paribus, why

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 13SQP
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Assume that a retailer sells 1000 six packs of Pepsi per day at at $3./6pk.  You, as an economic analysis , estimate that the cross price elastcity  between pepsi and coca cola is 0.4.  If the retailer raises the price of coca cola by 10%, how would sales of pepsi be affected, ceteris paribus, why

 

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