Suppose you are the manager of a beverage company selling a juice under the brand“Delicious”. There are 2 other major brands in the market, namely “Fresh, and “Organic andGreen”. Your data analyst estimated the demand of your product and provide you with thefollowing information: The cross-price elasticity of “Delicious”in response to price change inFresh”and “Organic and Green are 0.4 and -0.03 respectively. The income elasticity of”Delicious,“Fresh”and “Organic and Green”are -0.01, -0.02 and 0.05 respectively. lt isexpected that there is an upcoming economic recession.

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