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Chapter 1 Unit II questions

For Chapter 1 Unit II questions Click Nature & Scope of Business Economics
QUESTION
Q12) Suppose the price of Pepsi increases, we will expect the demand curve of Coca Cola to:

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Correct

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Solution:
the effect of an increase in the price of Pepsi on the demand curve of Coca Cola.
Since Pepsi and Coca Cola are substitutes, an increase in the price of Pepsi will lead to a shift in the demand curve of Coca Cola towards the right.

Correct option is (b)