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A large Coca Cola vendor recently hired some economic analysts to assess the effect of a price increase in its 1 6 ounce bottles from

A large Coca Cola vendor recently hired some economic analysts to assess the effect of a price increase in its 16 ounce bottles from $1.75 to $2.25. The analysts determined that, on average, the vendor's customers spend about $16.00 on soda (Coke and all other brands) each week, and the average price for other 16-ounce soda bottles is $1.75. The analysts also utilized some focus groups to determine the preferences of the vendor's customers. They used this analysis to build the following graph:
Suppose x0=8 and x1=5. Should the vendor expect to sell 5, more than 5, or less than 5 bottles of Coke after raising the price to $225 if Coke is an inferior good?
The vendor should expect to sell less than 5 bottles of Coke,
The vendor should expect to sell more than 5 bottles of Coke
The vendor should expect to sell 5 bottles of Coke.
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