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pepsi and coke are perfect subsitute of each other draw a demand curve for coke

pepsi and coke are perfect subsitute of each other draw a demand curve for coke

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Answer #1

In the above diagram demand curve shows that in case of perfect substitution demand for coke is negative. This means if price rise then quantity demanded fall and if price fall then quantity demanded increase . This is clearly shown by the above diagram. When price was P1 then quantity demand was Q1. But when price rises and becomes P2 then the quantity demanded for coke decreases and becomes Q2.

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