Answer to Question #48692 in Other Economics for uchenna

Question #48692
if cokeand pepsi are good substitutes explain under quantity demanded what happens when the price of coke is doubled
1
Expert's answer
2014-11-10T10:39:26-0500
Two goods are substitutes in demand if, when the market price of the first good rises, the demand of the second good also rises, and vice-versa.
If coke and pepsi are good substitutes, when the price of coke is doubled, the demand for coke will decrease and demand for pepsi will increase, as the quantities of substitute goods demanded are inversely related (if the quantity demanded of one good increases, quantity demanded of other good decreases and vice-versa).

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS
paypal