Estimate the change in the quantity of your soft drink order

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Reference no: EM133402060

Question: You are the manager of a store that carries generic soft drinks. Due to a local economic boom, your customers' incomes are forecasted to rise by ten percent during the next month. The income elasticity of demand for these products is estimated to be -1.5. Estimate the change in the quantity of your soft drink orders required to accommodate the new demand without a surplus or shortage of inventory (that is, how much will demand for the generic soft drinks change due to the increased income?).

Reference no: EM133402060

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