Question
D(Pcoke)= 26.17 - 3.98Pcoke + 2,25Ppepsi + 1.10acoke-0.62apepsi + 9.58s + 0.99Y where: aj is advertising expenses = $110, s=1 if summer, s=0 otherwise y
D(Pcoke)= 26.17 - 3.98Pcoke + 2,25Ppepsi + 1.10acoke-0.62apepsi + 9.58s + 0.99Y where: aj is advertising expenses = $110, s=1 if summer, s=0 otherwise y is real income=$200, Pcoke =$1 and Ppepsi = $3
Is coke an elastic or inelastic good? Calculate the cross price elasticity of demand for Coke and Pepsi, and explain the nature of the result?
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Macroeconomics
Authors: David Colander
8th edition
978-0078004407, 78004403, 978-0077247171, 77247175, 978-0077307110
