Mountain Dew is 4.4

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 12CQ: Jills Sausage Dog Stand projects the following demand for Jills sausage dogs: a. Calculate the price...
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Pepsi sells many types of soft drinks and its researchers found that the demand elasticity for Mountain Dew is 4.4, what should Pepsi (owners of Mountain Dew) do to their price to earn the most revenue?

 

Question 9 options:

 

Advertise more

 

set the price as high as possible

 

set the price as low as possible

 

consider producing a type of drink with a more elastic demand

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