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Posted on Jun 13, 2024

Assume the following figures on the demand curve for Frosty Cola: P0 = $2.50; Qd0 = 10,000 units P1 = $3.00; Qd1 = 6,000 units

Assume the following figures on the demand curve for Frosty Cola:

P0 = $2.50; Qd0 = 10,000 units

P1 = $3.00; Qd1 = 6,000 units

Given the price elasticity of demand for Frosty Cola on this segment of its demand curve, would you recommend that the company increase, decrease, or not change its price in order to lead to higher revenues? Why?

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