The Cross-Price Elasticity of Demand for Coke with Respect to the Price

question 269

Multiple Choice

The cross-price elasticity of demand for Coke with respect to the price of Pepsi has been estimated to be 0.61. If the price of Pepsi falls by 10%, all other things unchanged, the quantity demanded of Coke will:

• A) decrease by less than 6.1%.
• B) decrease by 6.1%.
• C) not change, because many people prefer Coke to Pepsi.
• D) rise.

---

Definitions:

Ethical Leadership

A style of leadership that is guided by respect for ethical beliefs and values, and the dignity and rights of others, focusing on morality and ethical decision making in the leadership process.

Ethics Competency

The proficiency in recognizing and implementing ethical codes and benchmarks during decision-making activities.

Code of Conduct

A Code of Conduct is a set of rules outlining the norms, rules, and responsibilities or proper practices for an individual, party or organization.

Magnitude of Consequences

The scale or significance of the outcomes that result from a decision or action.