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Temka [501]
4 years ago
10

We would expect: a. the demand for Coca-Cola to be less price elastic than the demand for soft drinks in general. b. the demand

for Coca-Cola to be more price elastic than the demand for soft drinks in general. c. no relationship between the price elasticity of demand for Coca-Cola and the price elasticity of demand for soft drinks in general. d. none of these to hold true.
Business
1 answer:
givi [52]4 years ago
7 0

Answer: Option B

             

Explanation: In simple words, price elasticity refers to the degree of change that a commodity experiences due to change in its price.

   In case of coca- cola, the price elasticity will be high as it has a close substitute available in the market named Pepsi. Therefore, if coca-coal increases its prices,its consumers would shift their demand to Pepsi.

  Thus,from the above we can conclude that the correct option is B.

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