Coke and Pepsi are substitutes if
A)the demand for Coke increases when the price of Pepsi falls.
B)the demand for Coke increases when the price of Pepsi rises.
C)the supply of Coke increases when the price of Pepsi falls.
D)the demand for Coke and Pepsi rise and fall together.

Question

Quizplus · Accepted Answer

Substitutes are goods that can replace each other. If the price of Pepsi rises, consumers may switch to Coke, increasing its demand, indicating that they are substitutes.

Coke and Pepsi Are Substitutes If