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DRQ #5 Capps 5 pts September 21, 2010

DRQ #5 Capps 5 pts September 21, 2010. The demand for the Coca-Cola product Dasani (bottled water) is given as: Q D = 0.75 P -0.72 P 0.43 AQF P 0.55 PL P -0.66 TEA

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DRQ #5 Capps 5 pts September 21, 2010

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  1. DRQ #5 Capps 5 pts September 21, 2010 The demand for the Coca-Cola product Dasani (bottled water) is given as: QD = 0.75P -0.72 P0.43AQFP0.55PL P -0.66TEA  where Q denotes the quantity of Coca-Cola Dasani sold, P denotes the price of Dasani, PAQF denotes the price of AquaFina, and PPL represents the price of private label brands of bottled water. (1 pt) (a) What is the technical name of this type of demand function?  (1 pt) (b) True or False. A price reduction for Dasani bottled water, all other factors invariant, will increase the number of units sold and sales revenue. (1 pt) (c) If Pepsi raises the price of AquaFina by 4 percent, then the quantity of Dasani sold rises by _________________ percent, all other factors invariant. (1 pt) (d) Tea and Dasani bottled water are __________________.   (1 pt) (e) True or False. The chief competitor of Dasani bottled water is private label brands of bottled water.

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