A producer of a new range of energy drink introduces their product at R25 per can. After a month of sales, they introduce a special of R 40 for two cans. A month later they sell the product at the original introductory price. They subsequently
introduce another special after another month of R 45 for two. After a month of sales, they re-introduce the onginal special
of R40 for two and this special is kept on-going for numerous months thereafter. Use price elasticity theory to show why.
ceteris paribus, the producer settles at the initial special of R 40 for two. In your discussion, include a comment on the
type of price elasticity observed with the demand for this energy drink at these prices.