Briefly explain what must have caused nestles profit

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Question 1 Nestlé's: "... sales volumes fell 2.6% in the last three months of 2022, with prices rising by an average of 10.1%." Assume that sales volume refers to the number of packages of Nescafé coffee sold. Holding everything else constant, if the sales volume of Nescafé coffee decreases by 2.6 percent in response to a 10.1 percent increase in price would this mean that the demand for Nescafé coffee is price-elastic? Briefly explain

Question 2. Refer to the previous question. Holding everything else constant, if the sales volume of Nescafé coffee decreases by 2.6 percent in response to a 10.1 percent increase would the revenue from sales of Nescafé coffee increase or decrease? Briefly explain

Question 3. For the full-year, Nestlé reported revenue of 94.42 billion Swiss francs... up from 87.09 billion francs in 2021. It said growth was driven by strong demand for its petcare and coffee products. However, ... profit fell to 9.3 billion francs from 16.9 billion francs in the previous year..." Briefly explain what must have caused Nestlé's profit to decrease even though its revenue from sales increased.

Reference no: EM133359857

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