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Calculate the price elasticity for Coca-Cola

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Question - Assume the Quantity demand for Coca-cola in Ethiopia increased by 20% within a month as the price of Pepsi increased from 10 birr/bottle to 12 birr/bottle, calculate the price elasticity for Coca-Cola? How do you interpret the result? What strategy could Coca-Cola may follow?

Reference no: EM132556959

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