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Demand for columbia brothers coffee

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Reference no: EM131291490

Assume the following demand for Columbia Brothers coffee.

Qd = 120 - 3Pc + 1.5 P DD - 3 PM +2 Adv where Qd is the quantity demanded (in thousands of pounds), PC is the price of Columbia Brothers ($/lb), P DD is the price of Dunkin' Donuts coffee ($/lb), quantity supplied (in thousands of pounds) and P is the price of coffee (per pound), PM is the price of a flavored milk ( $/pint) and Adv is the advertising budget ($000s). Assume further that PC = $10/lb, PDD = $8.50/lb, PM = $3.50/pint and Adv = 10 (in $000s).

Suppose that the price of flavored milk is increased by 5 %. What impact will this have on the demand for Columbia Brother's coffee?

Reference no: EM131291490

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