Pepsi One Is a Close Substitute for Diet Coke

question 63

Multiple Choice

Pepsi One is a close substitute for Diet Coke. When Pepsi introduced Pepsi One, the price elasticity of demand for Diet Coke ______ and Coke's ability to raise revenues through price increases ______.

• A)increased; was reduced
• B)increased; increased
• C)decreased; was reduced
• D)had no effect; was reduced