Pepsi and Coke Are Considered Substitute Goods

question 115

Multiple Choice

Pepsi and Coke are considered substitute goods.Because of this,one would predict that,holding all else constant,if the price of Pepsi increases,we would see

• A) the demand curve for Coke shift to the right.
• B) the demand curve for Coke shift to the left.
• C) no change in the demand for Coke.
• D) the demand curve for Pepsi shift to the right.
• E) the demand curve for Pepsi shift to the left.

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Definitions:

Bond Premiums

The amount by which the market price of a bond exceeds its principal amount or face value, usually occurring when the market interest rate is below the coupon rate.

Interest Income

Income earned from deposit accounts or investments through the receipt of interest payments.

Fair Value

The estimated market value of an asset or liability, based on current conditions rather than historical cost.

Long-Term Investments

Investments in securities or other assets intended to be held for a period exceeding one year for capital growth or income generation.