Question: Again consider the Coke and Pepsi example discussed in the chapter. Use graphs of reaction functions to illustrate what would happen to equilibrium prices if:

Again consider the Coke and Pepsi example discussed in the chapter. Use graphs of reaction functions to illustrate what would happen to equilibrium prices if:
a) Coca-Cola's marginal cost increased.
b) For any pair of prices for Coke and Pepsi, Pepsi's demand went up.

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