(Figure: Market Changes) Refer to the figures. If the figuresrepresent the market for a popular soda, which figure showsthe effect of an increase in the price of a competing energydrink?

Question

Quizplus · Accepted Answer

Figure C shows a decrease in demand for the soda, which is likely due to an increase in the price of a substitute, such as a competing energy drink. This is because the increase in the price of the substitute makes the soda relatively more attractive to consumers, leading to an increase in demand for the soda.

(Figure: Market Changes) Refer to the Figures