Coke and Pepsi Are Substitute Soft Drinks

question 9

Multiple Choice

Coke and Pepsi are substitute soft drinks. Which of the following would cause the demand curve for Pepsi to shift to the left?

• A) a new Pepsi ad campaign that increases the popularity of Pepsi
• B) the price of Coke decreases
• C) the price of Pepsi decreases
• D) the cost of making Pepsi rises

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Definitions:

Retail Inventory Method

The retail inventory method is an accounting practice that estimates the ending inventory balance of a retailer by using the cost to retail price ratio.

Physical Count

The process of manually counting inventory items to verify quantities and ensure the accuracy of records.

Most Current Prices

Refers to the latest available prices of goods, services, or assets, often used in the evaluation of market trends or valuation assessments.

Ending Inventory

The total value or quantity of goods available for sale at the end of an accounting period, calculated by adding any purchases to the beginning inventory and subtracting sold goods.