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If the price of Super-Dooper Cola decreases, what happens to the equilibrium price and equilibrium quantity for Really Wonderful Cola? (You may want to graph this question to find the correct answer.)

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Final answer:

If the price of Super-Dooper Cola decreases, the equilibrium price and equilibrium quantity for Really Wonderful Cola will decrease.

Step-by-step explanation:

In economics, when the price of one good affects the equilibrium price and quantity of another good, it is known as a substitute relationship. The question asks about the relationship between the price of Super-Dooper Cola and the equilibrium price and quantity of Really Wonderful Cola. If the price of Super-Dooper Cola decreases, it becomes relatively cheaper compared to Really Wonderful Cola. As a result, some consumers may switch from Really Wonderful Cola to Super-Dooper Cola, leading to a decrease in the demand for Really Wonderful Cola.

This decrease in demand causes the demand curve for Really Wonderful Cola to shift to the left. This shift results in a new equilibrium price and quantity for Really Wonderful Cola, where the price is lower and the quantity is lower compared to the original equilibrium. The graph below illustrates this relationship:

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