7. Assume that advertising shifts the demand curve for Coca-Cola to the right along the supply curve which pushes the Coca-Cola price up by 45%. If the old equilibrium price of Coke was $1.33/liter bottle and the old equilibrium quantity is 13,360.0 million liter bottles, the elasticity of Coca-Cola supply is 0.50 and the elasticity of demand is -1.83, what is the new equilibrium quantity demanded of Coca-Cola? What is the new equilibrium quantity supplied?

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To find the new equilibrium quantity demanded and supplied of CocaCola we can use the concept of ela... View the full answer