osayword8358 osayword8358

01-08-2020
Business

contestada

In March 2012, the state of California started requiring that all packaging for food and drink with the additive 4-methylimidazole (4-MI) be clearly labeled with a cancer warning. Because of this, both Pepsi and Coke changed their formula to eliminate 4-MI as an ingredient. If Pepsi and Coke did NOT change their formula, holding all else constant, what would have happened to the demand for these goods, assuming Pepsi and Coke were in a competitive market

Respuesta :

andromache andromache

02-08-2020

Answer:

The demand curve for Pepsi and Coke would have shifted to the left, causing the price of both products to decrease and the profits for both companies to fall.

Explanation:

As in the question it is mentioned that the if the Pepsi and Coke do not change the formula and all other things being constant so the demand for the goods in case of the competitive market is that the demand curve is shifted to the left which results in a decrease in the price of both goods also due to price falls the profits for both companies dropped.

Answer Link

Otras preguntas

a map of East Africa showing the various types of vegetation in east Africa

the yellow cab company charges a flat fee of $3.50 and an additional $2.50 per mile. the relaxicab company charge $2.30 per mile and a $4.54 fee. at how many mi

The insulated feature of space suit layers are designed to —.

Jessy and Jane live in the mountains of Montana near a lake and love to fish. They differ in bait preferences, however, and decide a wager is the only way to se

if a beach is in an east-west orientation and the waves are approaching the shore from the southwest in which direction will the longshore current be moving?

would this effect be classified as an age effect, a period effect, a cohort effect, or none of these?

Safe? How could we really be safe if we were alone, in a strange country? But there was a kindness in George’s eyes that told me he would do his best for us. He

A gene on the Y chromosome causes a rare disease. A woman married to a man with the disease has three children. The first two are daughters without the disease.

Stock Repurchase [LO4] Awake Corporation is evaluating an extra dividend ver- sus a share repurchase. In either case, $17,500 would be spent. Current earnings a

in ecosystems, organisms at the highest trophic levels usually contain less collective biomass than the organisms at lower trophic levels because

ACCESS MORE EDU ACCESS Universidad de Mexico