Principles Of Microeconomics
A change in quantity demanded (or a movement along the demand curve) is caused by a change in its own price while a change in demand (or a shift of the demand curve) is caused by a change in nonprice determinants that include changes in consumers’ income, taste or preference, price of other goods, expected future price, etcetera. Respond to the following:
- If Coke’s price increases, what will happen to the demand or quantity demanded for Pepsi, all other things being equal?
- Explain whether it is a movement along the demand curve or a shift of the demand curve.
- If Coca-Cola develops a new technology that makes Coke tastier, what will happen to the supply curve and demand curve for Coke?
- Is the demand (curve or schedule) for Coke or Pepsi seasonally different?
- What is the relationship between Coke and Pepsi? Do they have the same demand curve or are they different? Explain your reasoning.
Your initial post should be a minimum of 300 words.