### Why couldnt cocacola simply raise the price of coke

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##### Reference no: EM13213140

1985/the cocacola comp was faced with soaring prices for sugar cane, 1-cent increase in the price of sugar cane raised its total cost by\$20million.Rather than raise the price, comp looke for a cheaper input and replced cane suger with corn sugar:

A.why couldn't cocacola simply raise the price of coke? (use eco terminology)

B. is sugat a fixed or variable input?

C.did the switch in the input lower:total cost?variable cost?fixed cost?average cost?average fixed cost?average variable cost? explain why?

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