Cross-price elasticity of demand

Assignment Help Business Economics

Reference no: EM137822

Q. Due to rising food costs, our vending contractor, Royalle Vending, will implement a slight price increase on all carbonated drinks from $1.25 to $1.50 beginning this fall 2012 semester at all campuses. This is the first time since Royalle Vending was awarded the contract in January 2010 that the company has implemented any price increases. The price of bottled water will remain unaffected at $1.25.

For increased healthier options, look for new premium juices to be added to select vending machines at $1.75.

Why do you believe Royall Vending isn't increasing the price of bottled water as well?

What do you think the sign and magnitude of the Cross-Price Elasticity of Demand would be between premium juices and soda? What do you think the sign and magnitude of the Cross-Price Elasticity of Demand would be between premium juices and water?

What sales data would provide evidence that your hypothesis is likely correct?

Reference no: EM137822

Questions Cloud

Find out the velocity of m1 : A small but measurable current of 1.2*10^-10 A exists in a copper wire whose diameter is 2.5mm compute the current density and the electron drift speed.

Roma was a schoolteacher : Roma was a schoolteacher and earned $40,000. But she enjoys creating cartoons, so at the beginning of 2003, Roma quit teaching.

Find the electric field between them and surface charge : The parallel metal plate of a capacitor is detached by a distance of 0.5cm and is connected to a 90v battery. Find the electric field between them and surface charge density on the plate.

Determine if there are patterns of either excellence or lack : These can have a large impact on tenure and promotion decisions at many institutions. One particular instructor had ratings in 3 courses in one semester as given by the table below for the statement "The instructor is an excellent teacher.

Cross-price elasticity of demand : What do you think the sign and magnitude of the Cross-Price Elasticity of Demand would be between premium juices and soda.

Assume that it is constant throughout the trip : How much work did the movers do (horizontally) pushing a 150- crate 10.2 across a rough floor without acceleration, if an effective coefficient of friction was 0.50.

Enrich understanding of international economics : How can the issue, perspective, concept or model enhance and enrich understanding of International Economics.

What is the horizontal distance airplane engine falls : Vector A points in the negative y direction and has a magnitude of 3 units. Vector B has three times the magnitude and points in the positive x direction. Find out the direction and magnitude of the following vectors.

Some considerations to remember : What does it mean when asked; what are some considerations to remember given the different roles and people in the audience.

User Account

All Pages