Suppose Sprite and 7-Up are considered by consumers to be substitutes. The likely economic impact of a decrease in the price of 7-Up is a:
a. movement up along the demand curve for Sprite.
b. decrease in the supply of 7-Up.
c. rightward shift of the demand curve for Sprite.
d. leftward shift of the demand curve for Sprite.
Question 2
If there was no profit effect, but there was a misperception effect in the short run, then SRAS is ____ and LRAS is ____.
a. upward sloping; upward sloping
b. upward sloping: vertical
c. vertical; upward sloping
d. vertical; vertical
