Suppose the Daily Demand for Coke and Pepsi in a Small

question 50

Multiple Choice

Suppose the daily demand for Coke and Pepsi in a small city are given by Q_C = 90 - 100P_C + 400(P_P - P_C) and Q_P = 90 - 100P_P + 400(P_C - P_P) ,where Q_C and Q_P are the number of cans Coke and Pepsi sell,respectively,in thousands per day.P_C and P_P are the prices of a can of Coke and Pepsi,respectively,measured in dollars.The marginal cost is $0.45 per can for both Coke and Pepsi.If P_P = $0.75,what is Coke's demand function?

• A) Q_C = 90 - 400P_C
• B) Q_C = 390 - 500P_C
• C) Q_C = 390 - 400P_C
• D) Q_C = 465 - 400P_C

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Definitions:

Spontaneous Recovery

A process in which a previously extinguished response reemerges after the conditioned stimulus is presented again.

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after becoming associated with the unconditioned stimulus, triggers a conditioned response.

Reflexive Response

An automatic reaction to a stimulus, not under conscious control, often protecting the body from harm or promoting its physiological well-being.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is paired with an unconditioned stimulus.