Question: 4.Consider the price elasticity matrix provided below, which presents own- and cross-price elasticities for three national brands of orange juice. EFFECT OF A 1% PRICE

4.Consider the price elasticity matrix provided below, which presents own- and cross-price elasticities for three national brands of orange juice.

EFFECT OF A 1% PRICE INCREASE

For Minute Maid For Simply OrangeFor Tropicana

PRODUCTon Sales of ...on Sales of ...on Sales of ...

Minute Maid-3.88.59.62

Simply Orange.40-4.40.42

Tropicana.39.43-4.60

a.Given this information, which of these three brands has the greatest pricing power? Why?Be detailed, and consider own-price and cross-price elasticities in supporting your answer.(25 points)

b.Based on this information, which brand has the least pricing power? Again, consider own-price and cross-price elasticities in detailing your response.(25 points)

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