Essay
For each of the following situations, explain whether the demand for Gatorade would become more elastic or less elastic and why.
a. Competitors introduce new brands of sports drinks into the market.
b. A study finds that Gatorade consumption improves player performance.
c. Consumer spending studies show that people spend a small proportion of their budget on Gatorade.
Correct Answer:

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a. There are more substitutes available,...View Answer
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Correct Answer:
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