Again consider the coke and pepsi example discussed in the


Again consider the Coke and Pepsi example discussed in the chapter. Use graphs of reaction functions to illustrate what would happen to equilibrium prices if:

a) Coca-Cola's marginal cost increased.

b) For any pair of prices for Coke and Pepsi, Pepsi's demand went up

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Econometrics: Again consider the coke and pepsi example discussed in the
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