Diet Coke is a close substitute for Diet Pepsi. When Coca-Cola introduced Diet Coke in 1982, the price elasticity of demand for Diet Pepsi ________ and PepsiCo's ability to raise revenues through price increases ________.
A. decreased; was reduced
B. increased; was reduced
C. had no effect; was reduced
D. increased; increased
Answer: B
You might also like to view...
Along a downward-sloping linear demand curve,
a. slope is constant and elasticity is changing b. slope is changing and elasticity is constant c. both slope and elasticity are constant d. both slope and elasticity are changing e. no generalizations can be made about slope
Peter Schran plays no favorites. It's one price for all customers. Under this circumstance, we know that
a. MR = MC b. P = MC c. TR = TC d. P = AR e. P = TR
Output per capita would grow if:
a. the number of workers grow faster than the population. b. the population grows faster than the labor force. c. there was a greater level of disposable income. d. the number of illegal immigrant workers were reduced.
Studies the performance of the whole economic
a) marginal b) Macroeconomics