Question

A technological advancement in the production of Coca Cola comes at the same time as a...

A technological advancement in the production of Coca Cola comes at the same time as a price decrease in Pepsi. What happens to the equilibrium price (P*) and equilibrium quantity (Q*) of Coca Cola?

Group of answer choices

P* decreases and Q* increases

P* decreases and Q* decreases

P* increases and Q* is ambiguous

P* decreases and Q* is ambiguous

P* is ambiguous and Q* increases

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