Q 3. Consider the following scenario (5 marks)

Coke and Pepsi are perfect substitutes. Initially the price of Coke is higher than the price of Pepsi,

later on, Coke reduced its price and become equal to the price of Pepsi, then again after that - Coke

re-reduced its price and Pepsi became costlier than Coke. Draw the consumer's demand curve for

Coke using the optimal bundles. (Note: You can assume your data for your ease, otherwise it can

be done without using data).