What is the most likely reason for a decline in the quantity demanded of Pepsi?

Multiple choice question for Supply and Demand. Select an option, then review the explanation below.

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Pepsi's marketing efforts have become less impactful than before.The cost of Coca Cola has risen.Consumers of Pepsi have experienced a rise in their income.The price of Pepsi has gone up.

Explanation

A decrease in the quantity demanded of Pepsi is best explained by an increase in its price, which typically leads to lower quantity demanded. Changes in advertising effectiveness, prices of substitutes like Coca Cola, or consumer income affect demand differently but do not directly explain a decrease in quantity demanded.

Practice related questions from the same subject.

1.What is the typical shape of a demand curve?
2.What term describes a company earning profits beyond its normal profit level?
3.How does an increase in marginal cost affect output, and how does an increase in marginal revenue impact output?
4.Marginal revenue refers to the ________ resulting from producing an additional ________ of output.
5.What are firms generally assumed to do with their costs and profits?

What is the most likely reason for a decline in the quantity demanded of Pepsi?

Explanation

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