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Describe what happens to the demand for Coca-Cola products when the temperature changes (for example in cold days of winter and hot days of summer). In 1999, the Coca-Cola Company began testing vending machines that use thermometers to adjust the price of its products according to the temperature. Explain the effect these vending machines have on the speed of market adjustment. Have you ever wanted to buy a soft-drink on a very hot day, only to find that the vending machines are sold out. How would widespread use of such vending machines affect the availability of soft drinks on hot summer days??

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9472195

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