Suppose the daily demand for Coke and Pepsi in a small city are given by QC = 90 - 100PC + 400(PP - PC) and QP = 90 - 100PP + 400(PC - PP) ,where QC and QP are the number of cans Coke and Pepsi sell,respectively,in thousands per day.PC and PP are the prices of a can of Coke and Pepsi,respectively,measured in dollars.The marginal cost is $0.45 per can for both Coke and Pepsi.If PC = $0.60,what is Pepsi's demand function?
A) QP = 90 - 500PP
B) QP = 330 - 400PP
C) QP = 500 - 330PP
D) QP = 330 - 500PP
Correct Answer:
Verified
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