3) Coca-Cola: Suppose that Pepsi decreases the price of its six-packs from $3.00 to $2.50. How would this news change the demand for six-packs of Coca-Cola? a. First, graph the situation with price of Coca-Cola and quantity of Coca-Cola. Use BLACK for supply, BLUE for demand. Label supply as Sj and demand as Dị and D2. b. Using your knowledge of the laws of supply and demand, explain the shift(s) that have been made in your graph and describe what happened to the equilibrium price and quantity (3-4 bullet points), Make sure to include the 8 determinants of demand or 5 determinants of supply. Label the equilibrium points CLEARLY! c. Add a picture of Coca-Cola vs. Pepsi.
3) Coca-Cola: Suppose that Pepsi decreases the price of its six-packs from $3.00 to $2.50. How would this news change the demand for six-packs of Coca-Cola? a. First, graph the situation with price of Coca-Cola and quantity of Coca-Cola. Use BLACK for supply, BLUE for demand. Label supply as Sj and demand as Dị and D2. b. Using your knowledge of the laws of supply and demand, explain the shift(s) that have been made in your graph and describe what happened to the equilibrium price and quantity (3-4 bullet points), Make sure to include the 8 determinants of demand or 5 determinants of supply. Label the equilibrium points CLEARLY! c. Add a picture of Coca-Cola vs. Pepsi.
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 7P
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Transcribed Image Text:3) Coca-Cola: Suppose that Pepsi decreases the price of its six-packs from $3.00 to $2.50.
How would this news change the demand for six-packs of Coca-Cola?
a. First, graph the situation with price of Coca-Cola and quantity of Coca-Cola. Use
BLACK for supply, BLUE for demand. Label supply as Sı and demand as Dj and D2.
b. Using your knowledge of the laws of supply and demand, explain the shift(s) that have
been made in your graph and describe what happened to the equilibrium price and
quantity (3-4 bullet points), Make sure to include the 8 determinants of demand or 5
determinants of supply. Label the equilibrium points CLEARLY!
c. Add a picture of Coca-Cola vs. Pepsi.
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