EBK ECON MICRO
EBK ECON MICRO
6th Edition
ISBN: 9781337671828
Author: MCEACHERN
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 5, Problem 4P
To determine

The reason for a greater price elasticity of demand for coca cola in comparison to other soft drinks.

Concept Introduction:

Price Elasticity of Demand: It is the degree of responsiveness to change in quantity demanded due to change in price level.

The formula for measuring elasticity of demand is given as follows:

  e=ΔQΔP× [ P 1+  P 22 Q 1+  Q 22]

Where,

   ΔQ=Q2Q1

   ΔP=P2P1

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