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:

Output

Output is the total amount of goods and services produced by an economy or business over a set period, quantifying productivity and economic activity.

Short Run

A period in economics where at least one input (e.g., capital) is fixed, focusing on immediate effects rather than long-term outcomes.

Resources

A broad term for the assets, materials, and inputs used to produce goods and services, including natural, human, and capital resources.

Variable Cost

A cost that changes in proportion to the level of activity or volume of output in a business.