Economic

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|Assignment Two |

|Week Two |

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|Christina Macias |

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Unit 2 Assignment

Student Name:

Please answer the following questions. Submit as a Microsoft Word® document to the Dropbox when completed.

1. Analyze what would happen to equilibrium price and quantity in the market for Pepsi if the following occurred (be sure to indicate WHY it happens as well):

a. The price of Coke decreases.

Pepsi and Coke are both substitute goods because neither of them are a considered to be a necessity. If the price in Coke decreased then it is more likely that a consumer would purchase these good verses Pepsi, solely for the better cost. In doing so, the equilibrium...