If Coke and Pepsi are substitutes, an increase in the price of Coke will cause an increase in the equilibrium price and quantity bought and sold in the market for Pepsi.

Question

Quizplus · Accepted Answer

If the price of Coke increases, consumers will switch to Pepsi as a substitute. This will shift the demand curve for Pepsi to the right, leading to an increase in both the equilibrium price and quantity bought and sold in the market for Pepsi.

If Coke and Pepsi Are Substitutes, an Increase in the Price