Correct
Try again
Try again
Correct
Solution:
The given question is related to the concept of demand and supply.
It is asking about the effect of a decrease in the price of Pepsi relative to Coke and 7-UP on the demand for Coke and 7-UP.
According to the law of demand, when the price of a substitute good decreases, the demand for that good decreases.
Therefore, option (a) is correct. The decrease in the price of Pepsi will lead to an increase in its demand and a decrease in the demand for Coke and 7-UP as they are substitutes for Pepsi. Hence, option (d) is correct.
Module shows only option (d) is correct
Correct option is (a,d)