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One of the staples of the Coke brand is the 16 ounce bottled Coke sold in supermarkets, gas stations, and vending machines all across the United States. The average price of 16 ounce bottled cokes nationwide is somewhere between one dollar and two dollars, so what determines price increases or decreases for this product from the Coca-Cola bottling company. What if a 10% increase or decrease is considered in price or even better what if the average income of the consumer increases by an average of 10%? To determine whether Coca-Cola (Coke) should raise or lower prices based on the elasticity of demand (McConnell and Brue, p...
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