Answer:
Option (B) is correct.
Explanation:
Here we are assuming that Pepsi and Coca-cola are substitutes goods.
We know that there is a positive relationship between the price and demand of substitute goods.
Now, if there is an increase in the price of the Pepsi then as a result demand for the coca-cola increases. This would shift the demand curve for coca-cola rightwards which means that both equilibrium price and equilibrium quantity increases in a market of Coca-cola.
