ANSWERS: 4
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E. People would buy it no matter what the cost it is just something new to b**ch about like smokes or gas.
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Theoretically, B; the increase in price will reduce demand thus reducing the quantity supplied since Pepsi will not want to make unsold product with a shelf-life. In the really real world, E; there will be an increase in Pepsi's revenue. Depending on the manufacturing and distribution costs this may or may not mean an increase in profits though. If the price increase is merely enough to cover, say, the increased cost of fuel for the delivery trucks, then profits will remain constant.
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Wouldn't the supply and demand stay the same or increase slightly? All the addicts aren't going to give up their Pepsi over a liitle price increase, or they would have a long time ago.
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Neither. The increase of price will disminish the quantity demanded.
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