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A large Coca-Cola vendor recently hired some economic analysts to assess the effect of a price increase in its 16 oz bottles from $1 to
A large Coca-Cola vendor recently hired some economic analysts to assess the effect of a price increase in its 16 oz bottles from $1 to $2. The analysts determined that on average, the average vendor's customers spend about $15 on soda (Coke and all other brands) each week and the average price for other 16 oz soda bottles is $1. The analyst also utilized some focus groups to determine the preferences of the vendor's customers. To use this analysis to build the following graph:
Bottles of Other Soda Budget line with price of $1.00 Budget line with price of $2.00 Bottles of CokeStep by Step Solution
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