In Sweden, the soda market shows how price changes can affect what people buy and how they choose other options.

What is Price Elasticity?
Price elasticity tells us how much people's buying habits change when prices go up or down.

1. Inelastic Demand:

   • Some popular soda brands, like Coca-Cola, have inelastic demand. This means that even if the price goes up a little bit, people will still buy them. For example, if Coca-Cola raises its price from 20 SEK to 22 SEK, most people will still buy it, and the drop in sales won’t be very big.

2. Elastic Demand:

   • On the other hand, if a less-known Swedish soda raises its price, many people might decide to buy a cheaper brand instead. This shows elastic demand, where people are more sensitive to price changes.

What About Substitutes?

• There are many other drink options available, like different soft drinks or healthier choices like flavored water. If one brand raises its price, many people might quickly switch to these alternatives.
• If a big brand increases its price, it could lead to a big drop in sales as customers try other drinks.

In summary, when soda prices change in Sweden, it can affect many things. Brands need to be careful with their prices because shoppers have plenty of choices, which affects how much soda they end up buying!