What Would We Expect to Happen to the Price and Quantity

question 34

Multiple Choice

What would we expect to happen to the price and quantity of Pepsi if the price of Coke increases and Pepsi develops a new technology that makes its production process more efficient?

• A) The equilibrium price will go up and the equilibrium quantity will go up.
• B) The equilibrium price will be indeterminate and the equilibrium quantity will go up.
• C) The equilibrium price will go down and the equilibrium quantity will be indeterminate.
• D) The equilibrium price will be indeterminate and the equilibrium quantity will go down.
• E) The equilibrium price will go up and the equilibrium quantity will be indeterminate.

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Definitions:

Alternative-Choice

A method of decision-making that involves evaluating and choosing between two or more options or alternatives.

CNC Heavy-Duty Router

A robust and powerful computer-controlled cutting machine designed for heavy-duty work on a variety of materials.

Self-Styled Expert

An individual who claims to be an expert in a particular field or topic based on their own assertion rather than recognized certifications or qualifications.

Compliment Close

A close wherein the salesperson ends with a compliment to the prospect.