Assume that a retailer sells 2,000 six-packs of Pepsi per day at a price of $3.00 per six-pack. Also assume the cross-price elasticity for Pepsi with respect to the price of Coca Cola is 0.5. If the price of Coca Cola rises by 10 percent, what will be the new quantity of six-packs sold of Pepsi?

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To calculate the new quantity of sixpacks of Pepsi sold after the price of Coca Cola rises by 10 we ... View the full answer