Ceteris paribus, if the price of pepsi increases, the equilibrium price of coca-cola will , and the equilibrium quantity of coca-cola will o a. decrease; decrease o b. increase; increase oc. decrease; increase d. increase; decrease

Option (B) is correct.

Explanation:

Here we are assuming that Pepsi and Coca-cola are substitutes goods.

We know that there is a positive relationship between the price and demand of substitute goods.

Now, if there is an increase in the price of the Pepsi then as a result demand for the coca-cola increases. This would shift the demand curve for coca-cola rightwards which means that both equilibrium price and equilibrium quantity increases in a market of Coca-cola.