Essay
The cross-price elasticity of demand for Coke with respect to the price of Pepsi has been estimated to be 0.61.If the price of Pepsi falls by 10% in a period, how will that affect the demand for Coke in that period, all other things unchanged?
A.The demand for Coke will decrease but by less than 6.1%.
B.The demand for Coke will decrease by 6.1%.
C.The demand for Coke will not change because many people prefer Coke to Pepsi.
D.The demand for Coke will rise.
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