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

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Definitions:

Education Expense Deduction

A tax deduction allowing taxpayers to deduct eligible schooling and educational costs, lowering their taxable income.

Professional Development

Activities that develop an individual's skills and knowledge required for their professional life, including courses, workshops, and self-study.

Educator Expenses

An adjustable gross income deduction for teachers and eligible educators for unreimbursed expenses on supplies and equipment used in the classroom.

Self-employment Taxes

Taxes that self-employed individuals must pay, covering Social Security and Medicare contributions.