Economics Homework Help

pleas answer all questions carefully.

* Predict the direction of change in price and quantity in the market for Pepsi if any of the following happens.

1. The price of Coke goes up quite a bit.

2. A large number of Pepsi suppliers go out of business.

3. The price of Coke goes down quite a bit, and new suppliers enter the business.

*Provide a plausible explanation for each of the following outcomes:

1. The price and quantity in the market for Pepsi rises.

2. The price of Pepsi rises but the quantity falls.