household in delhi started to prefer pepsi as the price of fanta and limca have risen .explain impact of rise in price of fanta and limca on market of pepsi
Elis,
As people started to prefer pepsi over fanta and limca, the demand for pepsi will increase and the demand curve of pepsi will shift rightwards. As supply cannot be increased immediately, demand will exceed the supply and the producers of pepsi will increase the price. With an increase in the price of pepsi, people will start consuming it less and the demand curve will meet the supply curve attaining the equilibrium level.
As people started to prefer pepsi over fanta and limca, the demand for pepsi will increase and the demand curve of pepsi will shift rightwards. As supply cannot be increased immediately, demand will exceed the supply and the producers of pepsi will increase the price. With an increase in the price of pepsi, people will start consuming it less and the demand curve will meet the supply curve attaining the equilibrium level.