Question: Assume the cross-price elasticity between such colas is typically 1.00. Suppose the price of a 2-liter bottle of RC-cola increase from $1.50 to $1,65. As a consequence, what will happen to the sales of Eagle-cola (a substitute), currently at two million bottless a month? The Eagle sales will, bottles. O decrease by 100,000 O Increase by 100,000 Increase byShow transcribed image textLet’s see answer to this question along with detailed explanation: Answer: Correct answer is option C, that is increase by 200000. Meaning: Cross elasticity of demand states the responsiveness in change in quantity demanded of one good with respect t…View the full answerTranscribed image text: Assume the cross-price elasticity between such colas is typically 1.00. Suppose the price of a 2-liter bottle of RC-cola increase from $1.50 to $1,65. As a consequence, what will happen to the sales of Eagle-cola (a substitute), currently at two million bottless a month? The Eagle sales will, bottles. O decrease by 100,000 O Increase by 100,000 Increase by 200,000 O increase by more than 400,000
