Ceteris paribus, if the price of Pepsi increases, the equilibrium price of Coca-Cola will ________ and the equilibrium quant
ity of Coca-Cola will ________.
1 answer:
Answer:
Rise
Rise
Explanation:
Pepsi and Coca cola are considered substitutes. If the price of Pepsi increases, consumers would begin to consume more coca cola and the demand for coca cola would increase. This would lead to an excess of demand for coca cola over supply and prices would rise.
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