Again consider the Coke and Pepsi example discussed in the chapter. Use graphs of reaction functions to

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Again consider the Coke and Pepsi example discussed in the chapter. Use graphs of reaction functions to illustrate what would happen to equilibrium prices if:
a) Coca-Cola's marginal cost increased.
b) For any pair of prices for Coke and Pepsi, Pepsi's demand went up.
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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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