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

---

Definitions:

Circular Reactions

Repetitive actions typical in infant development, which serve to build cognitive and motor skills.

Muscle Strength

The ability of a muscle or group of muscles to exert force against resistance.

Toddlers

Young children, typically between the ages of one and three years, who are in the early stages of walking and developing language skills.

Child-directed Speech

A form of communication where adults speak to children in a simplified and exaggerated manner, often characterized by higher pitch, slower rate, and exaggerated intonation, to aid language acquisition.