What would be the consumer buying response to Coca-cola if the price of Pepsi doubled? If the prices of Coca-cola and Pepsi remained constant but the consumers income was reduced by 30%? Suppose all carbonated beverages tripled in price. How would the concepts of utility, income, and substitution predict consumer behavior based on the rise in the cost of carbonated beverages?
Pepsi and Coca-cola are two very close competitors and provide products which are substitutes for each other’s......
SUBJECTS / CATEGORIES:
1. Business Economics 2. Economics 3. Microeconomics
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