If Coke and Pepsi Are Close Substitutes, Then If

question 94

Multiple Choice

If Coke and Pepsi are close substitutes, then if:

• A) Coke raises its price, so will Pepsi.
• B) Coke raises its price, it will not lose customers to Pepsi.
• C) Pepsi lowers its price, it will not hurt Coke.
• D) Pepsi lowers its price, so will Coke.
• E) Coke raises its price, some customers will switch to Pepsi.

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Definitions:

Cookies

Small pieces of data stored on a user's computer by a web browser, mainly used to track and remember information about the user's activities and preferences.

Exchange

The act of trading goods, services, or currencies between parties, either directly or through a medium of exchange like money.

Opportunity Cost

The cost of forgoing the next best choice when making a decision.

Muffin

A small, baked item often eaten for breakfast or a snack, typically sweet and sometimes filled with fruit, chocolate, or nuts.