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"Because Coke and Pepsi Are Substitutes,a Decrease in the Price

question 214

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"Because Coke and Pepsi are substitutes,a decrease in the price of Pepsi will cause the demand for Coke to decrease.This initial shift in demand for Coke results in a lower price for Coke; this lower price will cause the demand curve for Coke to shift to the left." Which of the following correctly comments on this statement?


Definitions:

Fixed Ratio

In operant conditioning, a schedule of reinforcement where a response is reinforced only after a specified number of responses.

Latent Learning

Latent learning is the subconscious retention of information without reinforcement or immediate application, which becomes evident when a specific situation triggers it.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, which in turn affects the likelihood of that behavior being repeated.

Law Of Effect

A principle in psychology that suggests behaviors followed by favorable consequences become more likely, whereas behaviors followed by unfavorable consequences become less likely.

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