Coke and Pepsi Are Substitute Soft Drinks

question 62

Multiple Choice

Coke and Pepsi are substitute soft drinks. Which of the following would cause the demand curve for Pepsi to shift to the left?

• A) A report emerges that shows that drinking Pepsi helps to promote weight loss.
• B) The price of Coke decreases.
• C) The price of Pepsi rises.
• D) The cost of making Pepsi rises.

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Definitions:

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Adjusting Entries

Journal entries made in accounting records at the end of an accounting period to update account balances before preparing financial statements.

Net Income

The residual financial benefit a company experiences after expenses and taxes are subtracted from its income.

Fiscal Year

A 12-month period used for accounting and financial reporting purposes, which may or may not align with the calendar year.