Q1: consider the market demand and supply for Pepsi, what will happen to equilibrium price and quantity if: (properly labeled graph and elaboration required for each case separately) i. The price of Pepsi sets above equilibrium The price of Coke decreases ii. The price of input factor increases

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter4: Demand, Supply, And Markets
Section: Chapter Questions
Problem 4.8P
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Q1: consider the market demand and supply for Pepsi, what will happen to equilibrium price and quantity if: (properly labeled graph and elaboration required for each case separately) i. The price of Pepsi sets above equilibrium The price of Coke decreases ii. The price of input factor increases iv. Soft drinks causing health issues and the government increases tax on producers

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