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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 ounce bottles from $ to $ The analysts determined that, on average, the vendor's customers spend about $ on soda Coke and all other brands each week, and the average price for other ounce soda bottles is $ 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 and Should the vendor expect to sell more than or less than bottles of Coke after raising the price to $ if Coke is an inferior good?
The vendor should expect to sell less than bottles of Coke,
The vendor should expect to sell more than bottles of Coke
The vendor should expect to sell bottles of Coke.
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