3. Explain the new consumption pattern of the consumer QUESTION 2 You are the marketing director of a firm called Grey (Pty) Lid, who sells soft drinks. At a meeting it is decided to reduce the price of the soft drinks in an effort to increase sales. Your colleagues are not certain how it will affect the sales of the soft drinks. How will the income-consumption pattern be influenced and how will sales be affected. Answer the following questions Question Answer Will the income elasticity be positive or negative? Will the substitution effect be positive or negative? Will the income effect be positive or negative? Which effect is greatest? What will happen to the demand for this product if the price decreases