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Question: you are the manager of cocacola and are discussing with...

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You are the manager of Coca-Cola and are discussing with the marketing department the effect of Pepsi on the demand for Coca-Cola. Write out a demand equation for Coca-Cola that shows the effect of Pepsi on the demand for Coca-Cola. Explain the meaning of the coefficient on the price Pepsi and on advertising. Explain why you would spend money on advertising and how this would affect the demand for Coca-Cola. Draw a graph that shows the effect of advertising on the demand for Coca-Cola.

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