Domino Sugar is considering the purchase of Fisher Honey Co. for $100 million. Based on information obtained from 500 supermarkets around the country, when 1 lb. of Domino Sugar went o sale from $2.00 to $1.50, the average sales of 1 lb boxes went from 200 to 300 per week. The following week, when 1lb. jars of Fisher Honey went on sale from $3 to $2.50 the number of jars of Honey sold went from 200 to 275. If the sale of Fisher Honey to Domino Sugar goes through, what changes to each product's price should Domino Sugar make?

Answer

a. Increase the price of both, but increase the price of Fisher Honey more.

b. No change.

c. Lower the price of both.

d. Increase the price of both, but increase the price of Domino Sugar more.