In 1999,Coca-Cola considered a plan to install thermometers in vending machines that would charge more for cold beverages on particularly hot days.If the demand curve for Coke is like most demand curves,what would the result have been on hot days?
A)an increase in the available supply of competing soft drinks
B)a shortage of Coca Cola
C)a lower quantity of Coke demanded than at the lower price
D)no effect on the amount of Coke consumers would buy

Question

Quizplus · Accepted Answer

According to the law of demand, as the price of a good increases, the quantity demanded decreases. Therefore, if Coca-Cola were to charge more for cold beverages on hot days, the quantity demanded would likely decrease as consumers would be less willing to pay the higher price. This would result in a lower quantity of Coke demanded than at the lower price, as stated in choice C. The other options are unlikely outcomes of this pricing strategy.

In 1999,Coca-Cola Considered a Plan to Install Thermometers in Vending