00:01
If coke's price increases, what will happen to the demand or quantity demanded for pepsi, all other things being equal? explain whether it is a movement along the demand curve or a shift of the demand curve.
00:13
If coca -cola develops a new technology that makes coase tastier, what will happen to the supply curve and demand curve for coke? is the demand, curve, or schedule, for coke or pepsi seasonally different? what is the relationship between coke and pepsi? do they have the same demand curve or are they different? your reasoning.
00:33
So if coke's price increases, the sales of coke will go down because the demand is going to go down.
01:07
And the sales of pepsi will go up because the demand of pepsi is going to go up.
01:28
This is because there is only a slight difference in taste and they are considered substitutes.
01:54
So for most people, because they are considered substitutes by most people, when the price of one goes up, they'll just switch to buying the other if that price increase is significant enough.
02:05
For example, if the price only goes up by, say, a nickel, it's only five cents more expensive for the six -pack.
02:12
You're probably not even really going to notice.
02:14
But if all of a sudden, this price increase, they're talking about, like, let's say coke goes up $2 per six -pack, you're going to notice that.
02:21
And you may switch then to pepsi because they're substitutes for most people.
02:29
So this is because a movement, along the demand curve is what's going to occur.
02:52
So a movement along the demand curve will occur when the price of the good changes and the quantity demanded changes in accordance to the original demand relationship...