Final answer:
If the price of Gatorade increases, there will be an increase in demand for Powerade since it is a substitute. We can illustrate this effect by showing a rightward shift in the demand curve for Powerade due to the Substitution Effect.
Step-by-step explanation:
When the price of Gatorade increases, consumers will likely look for alternatives, creating an increase in demand for Powerade. Since Powerade is a substitute for Gatorade, the higher price for Gatorade drives consumers towards Powerade, as they provide similar benefits. The increase in demand for Powerade can be depicted graphically by a rightward shift in the Powerade demand curve. This is known as the Substitution Effect, where an increase in the price of one product leads to an increased demand for its substitute.
Answer: a. Increase in demand for Powerade