If the price of Pepsi rises, the price of Coke ________ because ________.
A) falls; Coke is a normal good
B) rises; Coke and Pepsi are substitutes
C) rises; Coke is an inferior good
D) rises; Coke and Pepsi are complements
E) falls; Coke and Pepsi are substitutes

Question

Quizplus · Accepted Answer

If the price of Pepsi rises, then consumers may switch to Coke as a substitute, causing an increase in demand for Coke and a corresponding rise in price.

If the Price of Pepsi Rises, the Price of Coke