Suppose Sprite and 7-Up are considered by consumers to be ...

[michelleunicorn]

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

[bdobbins]

Answer to Question 1

d

Answer to Question 2

b