Consider the following elasticity table. Brands Dixie Bare Hefty Solo PL Dixie -1.89 0.75 0.75 1.93...

  

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Consider the following elasticity table. Brands Dixie Bare Hefty Solo PL Dixie -1.89 0.75 0.75 1.93 0.44 Bare 0.5 -3.52 3.75 0.55 3.25 Note: PL=Private Labels (Store Brands) Hefty 0.75 3.89 -3.75 0.75 2.21 Solo 3.52 0.15 0.45 -2.65 0.25 PL 0.85 2.95 1.75 0.65 -5.25 Dixie understands that more often than not when they lower price Solo follows the price change. Based on historical data, it seems that Solo follows Dixie's price decrease is about 3/4 of the time. Suppose Dixie is thinking about a 5% price decrease. What will be the effect on Dixie's sales? answer must me x.xx% Consider the following elasticity table. Brands Dixie Bare Hefty Solo PL Dixie -1.89 0.75 0.75 1.93 0.44 Bare 0.5 -3.52 3.75 0.55 3.25 Note: PL=Private Labels (Store Brands) Hefty 0.75 3.89 -3.75 0.75 2.21 Solo 3.52 0.15 0.45 -2.65 0.25 PL 0.85 2.95 1.75 0.65 -5.25 Dixie understands that more often than not when they lower price Solo follows the price change. Based on historical data, it seems that Solo follows Dixie's price decrease is about 3/4 of the time. Suppose Dixie is thinking about a 5% price decrease. What will be the effect on Dixie's sales? answer must me x.xx%

Answer rating: 100% (QA)

ANSWER To calculate the effect of a 5 price decrease on Dixies sales we need to use the crossprice e... View the full answer