Implications of quotation


In 2004, the Wall Street Journal reported that Starbucks was set to raise some of its prices. The article stated that unlike Starbucks, "mass-market grocery brands such as Kraft Foods Inc.'s Folgers and Maxwell House coffees tend to be much more price-elastic." Which of the following best explains the implications of this quotation?

a. When Starbucks raises prices, it causes sales of Folgers and Maxwell House to rise a lot.

b. When Starbucks raises prices, it causes sales of Folgers and Maxwell House to fall a lot.

c. When the price of Folgers or Maxwell House coffee rises, consumers buy only slightly less.

d. When the price of Folgers or Maxwell House coffee rises, consumers buy a lot less.

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Implications of quotation
Reference No:- TGS060646

Expected delivery within 24 Hours