"Because Coke and Pepsi Are Substitutes,a Decrease in the Price

question 214

Multiple Choice

"Because Coke and Pepsi are substitutes,a decrease in the price of Pepsi will cause the demand for Coke to decrease.This initial shift in demand for Coke results in a lower price for Coke; this lower price will cause the demand curve for Coke to shift to the left." Which of the following correctly comments on this statement?

• A)The statement will be true if consumer tastes for Coke and Pepsi do not change.
• B)The statement is false because a change in the price of Coke would not change the demand for Coke.
• C)The statement is false because Pepsi is an inferior good; Coke is a normal good.
• D)The statement is false because one cannot assume that Coke and Pepsi are substitutes for all consumers.

---

Definitions:

Deficient Fluid Volume

A medical condition characterized by a lower than normal amount of body fluids, often leading to dehydration.

Electrolyte Balance

The maintenance of the correct concentration and distribution of electrolytes within the body's fluids, essential for normal cell function.

Cognitive Orientation

The mental process involving perception, memory, judgment, and reasoning, as related to one's awareness and interpretation of the world.

Interstitial

Relating to spaces or interstices within a tissue or organ, often referred to in a medical or biological context.