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A change in quantity demanded (or a movement along the demand curve) is caused by a change in its own

 

A change in quantity demanded (or a movement along the demand curve) is caused by a change in its own price while a change in demand (or a shift of the demand curve) is caused by a change in nonprice determinants that include changes in consumers’ income, taste or preference, price of other goods, expected future price, etcetera. Respond to the following:

  • 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.
  • If Coca-Cola develops a new technology that makes Coke 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? Explain your reasoning.

Your initial post should be a minimum of 300 words.

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