Pepsi and Coke are considered substitute goods.Because of this,one would predict that,holding all else constant,if the price of Pepsi increases,we would see

Question

Quizplus · Accepted Answer

When the price of a substitute good (Pepsi) increases, consumers are likely to switch to the other good (Coke), increasing its demand. This is represented by a rightward shift in the demand curve for Coke.

Pepsi and Coke Are Considered Substitute Goods