The Quantity Demanded of Pepsi Has Decreased

question 161

Multiple Choice

The quantity demanded of Pepsi has decreased.The best explanation for this is that

• A)the price of Pepsi has increased.
• B)the price of Coca-Cola has increased.
• C)Pepsi consumers had an increase in income.
• D)Pepsi's advertising is not as effective as in the past.

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Definitions:

Net Investment

The total spending on new capital minus the replacement of depreciated capital, indicating the actual addition to the capital stock in an economy.

GDP Deflator

An economic metric that converts the gross domestic product (GDP) from current market prices into constant dollar terms in order to measure the real growth of an economy, excluding the effect of inflation.

GDP Deflator

An economic measure of inflation that reflects changes in the price level of all goods and services produced domestically, adjusting nominal GDP into real GDP.

Price Level

The aggregate price mean of the complete variety of goods and services within the economy.