Pepsi has found that consumers will purchase ten cases of Pepsi One at $5.00 a case,twelve cases at $4.00 a case,and fifteen cases at $2.50 a case.The next logical step for Pepsi is to generate a(n)___________ based on this data.
A)demand curve
B)price constraints
C)break-even point
D)marginal revenue curve

Question

Quizplus · Accepted Answer

Pepsi's data shows how the quantity demanded changes at different prices. By plotting this data on a graph, Pepsi can create a demand curve that shows the relationship between the price of Pepsi One and the quantity of Pepsi One that consumers are willing to purchase. This will help Pepsi determine the optimal price for Pepsi One that maximizes their revenue.

Pepsi Has Found That Consumers Will Purchase Ten Cases of Pepsi