"connect" the concept of price elasticity of demand to a real world problem faced by Coca Cola which is mentioned in the below article and reflect back to how the issue is related to the economic theory of the Elasticity of demand.

1. What kind of elasticity does the Coca Cola executive assume Coke is? Why?

2. If the Coca Cola executive is correct, what will be the effect of this marketing strategy be on the firm's revenue from selling Coke?

3. Why did the executive believe that having the cans ''within arm's reach' in the checkout line was important? Could this positioning have an effect on the price elasticity of demand?

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The pressure is on for Coke.

For more than a century,Coca-ColaCo.KO-0.02%believed it could keep growing as long as it could place aCokewithin "an arm's reach of desire." But in the U.S., Americans have been drinking less of it for more than a decade.

Now, desire for Coke in its foreign markets is slackening too.

Global soda sales growth is slowing for a third straight year. Coke missed overall growth targets in 2013 as a result. For the first time since 1999, Coke's global soda volumes fell in the first quarter. While they bounced back in the second quarter, the trend is ominous.

Shifting Tastes US. per capita consumption per year, in gallons 4O soft drinks ........................ 42-2 Sports drinks 4:3 0 '90 '00 '10 Note: Sports drinks weren't tracked as a separate category until 1992. Source: Beverage Digest The Wall Street Journal