Question: Assume that the Chairman of Sackville Soft Drink Company asks you to forecast changes in consumer soft drink purchases associated with a proposed price

Assume that the Chairman of Sackville Soft Drink Company asks you to

Assume that the Chairman of Sackville Soft Drink Company asks you to forecast changes in consumer soft drink purchases associated with a proposed price change. Suppose by conducting a survey you find that if the price of a six-pack soft drink increases from $5.50 to S7.50. the quantity demanded will decrease from 2,200 units to 1,800 units a month. Should the company increase the price of its product? Explain the economic basis for your recommendation by showing all your work in details.

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