Question
A soft drink company is running a promotion to increase its market share. It reduces its soft drink price from $2.00 per can to $1.59.
A soft drink company is running a promotion to increase its market share.
It reduces its soft drink price from $2.00 per can to $1.59.
As a result, the sales increase from 12,000 cans to 16,000 cans for the same period.
What is the price elasticity of demand for this product?
Is this promotion was effective?
What would be the one pricing recommendation you can offer to company management on this product?
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Microeconomics Theory and Applications with Calculus
Authors: Jeffrey M. Perloff
3rd edition
133019934, 978-0133019933
