Coke Versus Pepsi [WLO: 4] [CLOs: 1, 2, 3]

Prior to beginning work on this discussion, read Chapter 3 in the textbook. 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, and so forth. Respond to the following:

• If Coke's price increases, what will happen to the demand 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.