Respond to the response below:

• If Coke's price increases, what will happen to the demand for Pepsi, all other things being equal?

If Coke's prices were to increase, the demand for Pepsi and all other equal products will rise, and the price will either stay the same or lower depending on company strategy. Even with that being said, some people will still chose Coke over sheer preference. While prices can skew a market one way or another, humans are still creatures of change. Some will adjust to the new Coke price, and some will make a change. Usually where the changes come into play are with a lot more expensive resources where the price difference is more than a couple of dollars.

• Explain whether it is a movement along the demand curve or a shift of the demand curve.

This would be a movement along the of the demand curve. With the price raise, there should be less coke sold. If there was a shift in demand, there would be factors outside of price like the taste of the product or the size of the group demanding the product.

• If Coca-Cola develops a new technology that makes Coke tastier, what will happen to the supply curve and demand curve for Coke?

If Coca-Cola developed a new technology that made Coke tastier, there would be a shift in the demand curve to the right. The size of the group demanding coke would increase so the supply would have to also.

• Is the demand (curve or schedule) for Coke or Pepsi seasonally different?

In my opinion, the demand curve for Coke and Pepsi shift, especially during the summer. During summer break or holidays, I would think that soft drinks are consumed more often.

• What is the relationship between Coke and Pepsi? Do they have the same demand curve or are they different? Explain your reasoning.

Coke and Peps are soft drinks very close in taste. I would imagine that some people that don't have a preference may buy the cheaper of the two. With this being the case, I would think that their demand curves would move in opposite directions as their counterpart.